ITT Tech Shut Down Is Affecting Triad Students

ITT Tech Closes All Campuses

HIGH POINT, NC -- Imagine waking up ready to start your last quarter of nursing school to find your school, out of nowhere, closed.

Mallory Mabe knows the feeling. She only had 12 weeks left of ITT's nursing program. Now doesn't know where to go.

"What do I do next? What do I do now?" Mabe said. "I've invested the last two years of my life and put my heart and soul into this and, where do I go from here?"

Those are questions ITT Tech isn't answering. The institute is blaming the Department of Education for banning ITT from enrolling new students who use federal financial aid.

“Our responsibility is first and foremost to protect students and taxpayers,” said U.S. Secretary of Education John B. King Jr.“Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds.”

The Department of Education released a statement listing the reasons for the ban. They said ITT doesn't meet standards such as "financial stability, including having adequate revenues and assets to meet its responsibilities."

ITT Tech responded with this statement.

The shutdown affected 40,000 students and 8,000 employees. All were notified via email.

But right now all Mabe is worried about is her future. The closest school that will accept her transfer credits is ECPI in Charlotte. ECPI's Greensboro campus doesn't have a nursing program comparable to the one Mabe was enrolled in at ITT.

EARLIER INFORMATION

ITT Educational Services says it is ceasing operations at all of its ITT Technical Institutes permanently.

The company says the closures are due to an investigation and sanctions by the U.S. Department of Education.

"It is with profound regret that we must report that ITT Educational Services, Inc. will discontinue academic operations at all of its ITT Technical Institutes permanently after approximately 50 years of continuous service," the company stated Tuesday. "Effective today, the company has eliminated the positions of the overwhelming majority of our more than 8,000 employees."

ITT Tech, known for its TV commercials, had three locations in Houston: on the north side, the west side and in Webster.

Last week the Associated Press reported the U.S. Department of Education banned the for-profit college chain from enrolling new students who use federal financial aid.

The company was the subject of state and federal investigations focusing on its recruiting and accounting practices. 
 
Among the measures, ITT was been ordered to pay $152 million to the department within 30 days to cover student refunds and other liabilities in case the company closes. The chain, based in Indiana, is still paying another $44 million demanded by the department in June for the same reason.
 
The education department also has prohibited ITT from awarding its executives any pay raises or bonuses, and it must develop "teach-out" plans that would help current students finish their programs at other colleges if the chain shuts down.
 
Under the new measures, current students can continue receiving federal grants and loans.
 
Education Secretary John King said the government is taking action to protect students and taxpayers following "troubling" findings about the company. This month, a group that accredits ITT found that the chain failed to meet several basic standards and was unlikely to comply in the future.
 
"It simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal financial aid," King said during a telephone conference with reporters.
 
(The Associated Press contributed to this report.)

(© 2016 WFMY)


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