ITT Technical Institute has been shutdown for good
By Carlos Camacho (Sports Editor) -10/11/16
The for-profit technical school ITT Technical Institute closed its doors for good nationwide on September 6th, 2016 after 50 years in operation. The news has left more than 30,000 students, who planned to start class in October, without a “plan B” or a diploma from a school that promised them a bright future.
The company that operates for the chain, ITT Educational Services Inc., blames the U.S Education Department. Prior, ITT Tech had been facing accusations of chronic financial mismanagement and questionable recruiting tactics. Because of those accusations, ITT Tech was forbidden to enroll students who receive financial aid to protect taxpayer dollars, and that left company officials scrambling to find a solution that would keep the school in business. The government also demanded that ITT boost its existing surety, money that someone is given as a guarantee that they will do what they are legally required to do, to $247.3 million, up from $94.4 million earlier this year, to protect taxpayers in case of a shutdown.
Since the student financial aid was a critical source of revenue, having that cut, and the increase in surety, led to the school’s downfall. Last year, over 45,000 students applied, which resulted in 850 million in revenue, of which 580 million was from federal aid.
ITT has come up with two options for students who were enrolled or recently left the school.
Joshua Cueva, ITT class of 2010 graduate and computer science major, reacted, “It’s something that is unfortunate because it ruins the school’s reputation. I wouldn’t have seen it coming, but you can’t put taxpayer dollars in your pocket.”
According to the Education Department officials and ITT executives, students who left the school in the past 120 days had two options: they could apply to get their student loans forgiven or transfer their credits to another school with a similar program. In the case of transferring, the student will not be eligible for loan forgiveness.
There are more than 100 graduates going on a debt strike demanding to have their government loans forgiven. Corinthian College had a similar fate to that of ITT in 2014 where 200 students went on a debt strike.
Kennedy is hiring a new computer that used to teach at ITT Tech, possibly for the second semester. The next teacher will have to first take the California Basic Educational Skills Test, and after the results are in, the potential candidate will be taking over a networking class and the A-Plus certification class.
ITT Tech also faces lawsuits over layoffs because of the failure to inform their over 8,000 employees of the shut down.