Sep 08, 2016 09:33 AM EDT
ITT Tech Gets Shut Down By Education Department Because Of Financial Liabilities
The Department of Education brought down ITT in a few weeks time. ITT Technical Institute is a for-profit giant school. It operated more than 130 schools in the United States. It has on its roster about 45,000 students. Recently, the Education Department forced ITT to announce that it will cease its operations and will no longer enroll new students for the year.
In addition, Forbes indicated that the Education Department has barred it from receiving federal financial aid such as student loans and Pell Grants.
The current students were said to be in a Catch-22 situation. Prior to its closure, the current students at the time were given the choice. To either remain at ITT Tech in the hopes that the school will close and they will be eligible for a closed school discharge. Or, they can quit the school and enroll at another school but dropping the opportunity for loan forgiveness. Especially when they need to transfer their ITT Tech credits.
The dilemma here is that the students are facing the risk of not completing their education anywhere. Which is why the Department of Education shut down the school. The Department of Education did not only cease the operations of the school but also cuts of its main source of income.
ITT Tech was receiving substantial taxpayer subsidies in the form of student loans and Pell Grants. Currently, tax payers are wondering where their money is going to. As of now, only current students and recent drop outs are the only eligible individuals that are eligible for school loan discharges. However, Massachusetts Attorney General Maura Healy could change all that. Healey is suing the school for allegedly defrauding students regarding its job placement rates. If guaranteed a win, this assures ITT Tech graduates of loan forgiveness as well. As long as there are grounds that prove they have been defrauded.
Watch this video below of ITT Tech making the news. Share your opinion in the comments section, too:
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