ITT Tech has closed its more than 130 campuses around the United States, according to a report from Inside Higher Education. The final blow came from the U.S. Department of Education (ED) when it barred ITT Tech’s parent company from accepting new students who rely on federal student loans or grants.
More than 40,000 students and 8,000 employees are affected by the closure. Remaining employees are helping students obtain their records and facilitate transfer to other institutions.
“Today, we know by our experience that a U.S. institution or business can be forced to shut down without proof of allegations,” said CEO Kevin Modany. “The regulatory assault on our schools and institutions is unprecedented. We have had no right to pursue our right to due process, and this should be concerning to all Americans.”
Federal regulators had been watching ITT Tech for a couple of years, following complaints from the Accrediting Council for Independent Colleges and Schools, according to a report from the Chicago Tribune. ED required ITT to increase its reserves from $94.4 million to $247.3 million to cover the possibility it might close. The amount represented 40% of the federal student aid the company received in 2015.
“It wasn’t a decision we took lightly,” said U.S. Under Secretary of Education Ted Mitchell. “Ultimately, our responsibility is not to any individual institution. It’s to protect all students and taxpayers, and I have no doubt our decision to take action was the right one.”