ITT Tech Is Closing All Campuses – Some Loans Will Be Forgiven

Today is a bad day for those only a handful of semesters from getting a degree at ITT Technical Institutes. The for-profit college shut down today after two years of oversight from federal regulators. The move puts 40,000 students out on the street as well as 8,000 employees in 38 states. ITT Tech claims to have helped hundreds of thousands of people get career-focused technical educations. a number of fairly large for-profit schools have closed in recent years amid a government crackdown on the sector.

“For more than half a century, ITT Tech has helped hundreds of thousands of non-traditional and underserved students improve their lives through career-focused technical education,” the company said in a statement. “We believe the government’s action was inappropriate and unconstitutional.”

The U.S. Department of Education recently banned this for-profit college from enrolling new students who receive federal aid. This was effectively a death blow to ITT Tech as they derived 80% of their cash revenue from Title IV federal aid, including Pell Grants and student loans.

Who is ready for the ITT Tech commercials on TV to be over? Too soon?