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ITT Technical Institute cannot enroll new students with federal financial aid.
(ITT Tech)
CLEVELAND, Ohio - ITT Technical Institute, a for-profit college with campuses in Warrensville Heights, Strongsville, Akron and Youngstown, has been prohibited by the U.S. Department of Education from enrolling new students who use federal financial aid.
The ban, announced Thursday, along with a set of increased federal oversight of the for-profit institution, continues several years of federal scrutiny of ITT Tech, which has more than 130 campuses in 38 states and enrolled approximately 45,000 people last year, Inside Higher Ed reported.
"Our responsibility is first and foremost to protect students and taxpayers," U.S. Secretary of Education John B. King Jr. said during a phone call, Inside Higher Ed reported. "Looking at all of the risk factors, it's clear we need to increase financial protection and it wouldn't be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds."
According to the Department of Education, current ITT students with federal loans have these options:
The Education Department has required ITT to develop "teach-out" plans for current students, allowing them to finish their programs at other colleges if ITT shuts down.
The company has been under increased scrutiny by the Education Department since 2014 and has been accused by both federal and state regulators of misleading students about the quality of its programs and their employment potential upon graduation, the New York Times reported. The Consumer Financial Protection Bureau filed a lawsuit against ITT two years ago, accusing the college chain of predatory student lending.
Government loan programs are the lifeblood of ITT and other for-profit education companies. Federal aid accounted for almost 70 percent of ITT's $850 million in revenues last year, the Education Department said.