One of the nation’s largest for-profit colleges has closed all of its campus doors….permanently… angering many current and future students.
According to the LA Times, more than 40,000 students at ITT Technology Institute are asked out as word that over 130 campuses have closed, making it one of the largest college closures in U.S history.
The massive closure is said to be the result of the U.S. Education Department barring it’s new students from using federal financial aid as well as blocking ITT Tech Executives from getting raises or bonuses.
In a statement, the school expressed its “profound regret” as over 8,000 employees have lost their jobs as well as its thousands of students left without many educational options.
“The damage done to our students and employees, as well as to our shareholders and the American taxpayers, is irrevocable,” the statement said.
“We believe the government’s action was inappropriate and unconstitutional, however, with the ITT Technical Institutes ceasing operations, it will now likely rest on other parties to understand these reprehensible actions and to take action to attempt to prevent this from happening again.”
30-year-old Leon Wiggins II, a student at the school, also expressed his anger.
“Two quarters ago there were rumors about the school having problems, but they told us that anyone who was already a student would be allowed to finish,” said Wiggins. “Am I angry? I’m like angry times 10 million.”
While like Wiggins, many students and employees are angry about the sudden shutdown but not everyone outside of the school’s walls see the closure as a negative thing. Staff Attorney for Consumers Union, Suzanne Martindale, says that many people are happy that “students and taxpayers will no longer subsidize this failing institution.”
She goes on to say,
“ITT Tech has a long record of making big promises to students, only to leave them in debt without delivering the kind of quality education they need to succeed.”
As for now, currents students have been given a few options when it comes to transferring credits and loan forgiveness.
Via LA Times
The Education Department on Tuesday sent an email to ITT’s 35,000 enrolled students to alert them of the closure and options available to them, said Ted Mitchell, the undersecretary of education.
The department has a team of employees ready to answer telephone questions at 800-4FEDAID, he said. It also has a special website for ITT students and is planning a series of webinars to help them figure out their options.
“We think that it is important for students to continue what they started,” Mitchell told reporters on a conference call. “There’s nothing more important than a college degree in today’s economy.”
Students who were enrolled or had withdrawn from ITT within the last 120 days have two options, Mitchell said.
They could apply to have their federal student loans forgiven. Information is available at the Education Department’s ITT website or by calling the loan servicer.
Students also could try to transfer their ITT credits to another school. But if those credits are transferred to the same program of studies at another school, the loans for the ITT credits would not be eligible to be forgiven, Mitchell said.
Any students who feel they were defrauded can apply to have their federal student loans forgiven, Mitchell said.
ITT students also could try to have private student loans forgiven and get compensated for cash tuition payments through the state’s Student Tuition Recovery Fund, said Robyn Smith, a senior attorney at the Legal Aid Foundation of Los Angeles.
The organization is planning a clinic Thursday for low-income ITT students to explain their options, she said. The clinic will be held at the foundation’s west office at 1102 Crenshaw Blvd. Students can call 800-399-4529 to register.
TSR STAFF: Debra Oh! @The_Ebony_Issue
Source: http://www.latimes.com/business/la-fi-itt-tech-20160906-snap-story.html
