ITT Educational Services Inc has been under fire for allegedly deceptive marketing practices. The for-profit institution says it will cease operations at its ITT Technical Institutes. The Department of Education added rigorous oversight to ITT’s operations back in April and banned it from enrolling further Title IV students. (Those are students using federal financial aid funds.) ITT says that closing its ITT Technical Institutes now is at the Department of Education’s directive. The Department, in a letter to ITT students, said it recognized that the possible outcome of its increased oversight would be “that a school may choose to close rather than take corrective actions, which can cause disruption and disappointment for current students.”
ITT chose closing over corrective actions. In reaction the Department of Education told current ITT students that “you may be eligible to have your federal student loans for your program at ITT discharged. Your federal loan debt will be wiped away and you will have the option of restarting your education somewhere new.”
