ITT Tech shutdown: What's next for students

  • Posted by a hidden member.
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    Sep 07, 2016 9:46 PM GMT
    Not that an ITT Tech degree (much like Devry) carries any weight in the, rather, snooty corporate world, but this is a serious matter icon_confused.gificon_redface.gif
    This is a huge blow for vocational education...............icon_sad.gif




    http://money.cnn.com/2016/09/07/pf/college/itt-tech-shutdown/

    About 35,000 students were expecting to return to class at ITT Tech Institute next week -- but instead they're left scrambling to figure out how to transfer their credits after all 130 campuses were suddenly shut down.

    Some of the students had gone back to school to become nurses. Others are single parents trying to get their associate's degree and support their family. Many are veterans who used up their GI Bill benefits on a degree they might not be able to finish.

    Now, they're left with a pile of student loans and no degree to show for it. And recent grads worry their degree has been rendered worthless.

    Students now have two options: give up and have their federal loans wiped away or try to transfer to a new school (although ITT admits its credits are unlikely to be accepted elsewhere).


    Why did ITT shut down?

    Last week, the government cut off federal financial aid for new students. That's a big problem for ITT, a for-profit college, that relies on federal grants and loans students receive for a big chunk of its revenue. Without it, ITT decided it could no longer operate.

    ITT has cried foul, claiming the regulations are too onerous and forced it to abruptly close and layoff 8,000 people.

    But the school was in jeopardy of losing its accreditation -- and that became the final straw for the Department of Education which has been concerned about the school for years. The Consumer Financial Protection Bureau and numerous state attorneys general have sued ITT claiming it scammed students. It's also facing a lawsuit from the Securities and Exchange Commission for allegedly defrauding investors.




    A Message from the Secretary of Education to ITT Students
    [url]http://blog.ed.gov/2016/09/message-secretary-education-itt-students/?utm_campaign=%2B+Education&utm_source=hs_email&utm_medium=email&utm_content=33955092&_hsenc=p2ANqtz-_xy0_CYIc-brhZGgH6NidIU6XuImmRDMsEQvNXSJaCsVz5wsFDKI3DEXcHSMIy0F9abPJz_g05TV-xL_PqFEaJjFSq1g&_hsmi=33955092[/url]

    Today, ITT Educational Services, Inc. (ITT) announced that it is closing all of its ITT Technical Institute campuses. For most of the world, that news will be covered as a business story or a political one, but I know that for you it is deeply personal. You are probably wondering what this means for your future; how it is going to affect your finances and your ability to continue your education.

    In recent years, ITT has increasingly been the subject of numerous state and federal investigations. In August, ITT’s accreditor, the Accrediting Council for Independent Colleges and Schools (ACICS) determined that ITT “is not in compliance, and is unlikely to become in compliance with [ACICS] Accreditation Criteria.” This came amid increasingly heightened financial oversight measures put in place by the Department over the past two years due to significant concerns about ITT’s administrative capacity, organizational integrity, financial viability, and ability to serve students.
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    Sep 07, 2016 9:56 PM GMT
    Sounds real messy, yes the WARN Act requires a 60 day notice for en masse layoff or closure...good luck getting any money now icon_eek.gif




    2 Laid-off ITT Educational Employees File Federal Lawsuit
    http://abcnews.go.com/US/wireStory/laid-off-itt-educational-employees-file-federal-lawsuit-41927899

    Two employees laid off by the parent company of for-profit college chain ITT Technical Institute have filed a lawsuit claiming the company violated federal law by not providing 60 days' notice.

    Allen Federman, a business analyst at ITT Educational Services Inc.'s Carmel, Indiana, headquarters, and Steve Ryan, an instructor at two ITT Technical Institute locations in California, filed the complaint Tuesday in U.S. District Court in Delaware.

    The lawsuit seeks class-action status on behalf of the 8,000 employees who are losing their jobs as a result of ITT's decision to shut down all 130 ITT Technical Institute campuses in 38 states, the Indianapolis Business Journal reported ( http://bit.ly/2bTrBgt ).

    ITT announced Tuesday it was closing the campuses because it cannot survive recent sanctions by the U.S. Department of Education.

    The lawsuit claims ITT violated the federal Worker Adjustment Retraining and Notification Act, which requires 60 days' advance written notice in the case of mass layoffs or plant closings. The law affects employers with more than 100 employees and business sites with more than 50 workers. ITT Tech campuses with fewer than 50 employees might not be responsible for following the law.
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    Sep 12, 2016 3:26 PM GMT
    most interventions are painful
  • Destinharbor

    Posts: 4435

    Sep 12, 2016 4:03 PM GMT
    I hired a guy who used to sell their enrollment packages. What he told me about their tactics was beyond shocking. They intentionally targeted poor people figuring when they couldn't pay back the loans, they'd be no worse off than before. They knew their "school" led to nothing. It was an elaborate ruse to pocket student loan money only.