ITT Tech shutters campuses after federal aid sanctions

CARMEL, Ind. — The for-profit college chain ITT Educational Services is shutting down its campuses days after the U.S. Department of Education banned it from enrolling new students who use federal financial aid.

The company, which operates vocational schools, announced "with profound regret" in a statement Tuesday that it is ending academic operations at all of its more than 130 campuses across 38 states.

Today, we awoke to the news that ITT was closing its campuses," Mass. Attorney General Maura Healey said Tuesday. "This really doesn't surprise us as this is one of the typical, predatory, for-profit schools that has been out there taking advantage of students in Massachusetts and across this country."

The company, based in Carmel, Indiana, says its move will have an impact on hundreds of thousands of students and alumni as well as more than 8,000 employees. ITT Tech has campuses in Norwood and Wilmington.

"First of all, cancel all payments to the school," Healey said. "The second thing, save all of your documentation related to the school and any payments made. Third, and most importantly, if you are a student at ITT and you are enrolled at ITT, you are going to be eligible to have all of you federal loans discharged."

However, she said private loans may not be eligible in the same way.

ITT Educational Services says it was forced to take the action after the U.S. Department of Education issued sanctions Aug. 25, including a ban on enrolling new students who rely on federal financial aid.

The attorney general said the school was lying to students about graduation rates and job placement and worse when it came to their curriculum.

"A program that purported to offer computer technology training, that instead was a program where students were basically placed in big box stores to sell computers, rather than actually learn," Healey explained.

Her office is asking anyone who is currently enrolled to contact them.

According to the Mass. Department of Higher Education, almost 700 students receive Federal student loans to attend ITT.

Cox Media Group