Merely a week after ITT Tech stopped enrolling students, they’ve announced the company will be Closing for good.ITT was forced to shut down as it’s no longer able to accept federal aid; meaning their incoming students would not have access to federal student loan money. With their high tuition costs, the company had to call it quits.
Along with other for-profit colleges, ITT has been widely scrutinized for getting their students to take out thousands in government grants and loans and then failing to assist their graduates with job training and placement. In 2015 alone, ITT Tech received about $580 Million in federal money according to the Department of Education.
A shocking announcement from The Atlantic states that, “students pursuing bachelor’s and associate’s degrees at for-profit colleges saw their earnings drop, compared to before they started the program.” This is to say that prior to attendance at ITT, with the debt loads they’ll have to pay off as a result of attending the school, the students are better off having not gone to one of its many campuses.
This is a sad reality for many of the attendees who are forced to pay back tens of thousands in student loan debt and are still struggling to find work. If it feels like you qualify for Student Loan Forgiveness Programs Please Call Us At
There is a different type of loan forgiveness available for everyone that attended ITT. Call now to see how you can eliminate your student loan payments.
ITT Tech was founded in 1946 as Educational Services, Inc. and has been headquartered in Carmel, Indiana, since 1969.
15 former students alleged misrepresentation, fraud and concealment by ITT arising out of their recruitment and education at ITT campuses. In September 1998, ITT settled all of the claims.
ITT agreed to pay $730,000 to settle a lawsuit with California in which employees alleged that it inflated students’ grade point averages so they qualified for more financial aid from the State of California.
Consumer Finance Protection Bureau (CFPB) sued ITT, alleging that they used high-pressure tactics to coerce students into high-interest private loans that were likely to end in default.
In a 2015 federal whistleblower lawsuit, a former ITT Tech dean of academic affairs alleged that the company directed recruiters to use coercive tactics to pressure students into enrolling. ITT admitted students who were unable to succeed at the school and unlawfully paid sales commissions to recruiters for enrollments. ITT Tech also lied to students about their financial obligations and ability to transfer ITT credits to other schools and about the jobs students could expect to get after graduating.
Department of Education sent a letter to CEO Kevin Modany asking ITT Educational Services to show that it has enough money available to refund students in case it shuts down unexpectedly.
In 2018, a settlement to a class action lawsuit was tentatively reached to wipe out student loans for attendees from 2006 to 2016. Students who attended ITT Tech may be able to have their debt forgiven by applying for a borrower defense to repayment.
I can finally stop worrying about my student loans and start shopping for my first home. I shouldn’t have waited so long to call for help.
I’ve been hearing about student loan forgiveness a lot from campaigning politicians. I didn’t know the programs have actually existed since the Bush Administration and apply to every situation until I called!
ITT Tech took advantage of my situation and my federal loans. I’m so happy the US Department of Education stepped up to help me and my classmates.