ITT Tech Shuts Down Campuses After Federal Aid Sanctions

CARMEL, Ind. (CBS/AP) — 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.

According to its website, there are two campuses in Massachusetts in Norwood and Wilmington.

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.

Tuesday afternoon, Massachusetts Attorney General Maura Healey asked students who attended the two Massachusetts campuses to cancel their payments to the school, save all of their documentation, and contact her office to apply for a discharge of their federal loans.

“These for-profit schools are really predicated on taking in as much money as possible by way of federal student loans, doing as little as possible for students, and making investors rich all the while,” Healey told reporters.

In April, Healey’s office sued ITT for lying to prospective students about the success rates of its graduates.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments

One Comment

  1. Holmes says:

    What took so long?

  2. bob says:

    I went to ITT back in 2004 to 2006. Even though I graduated they were pretty much useless in locating a job for me somewhere. Besides a diploma, i received a lot of debt that i will never, ever be able to pay off. With this closing I am hoping to get the loans (yes, loans. Federal and personal) forgiven. Sallie Mae are nothing but crooks which is who the loans are with. I just wish there was a number or person to contact who I could talk with about getting the loans forgiven.

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Boston

WheelMobile
Download Our App
Download Weather App

Listen Live