CARMEL, Ind. – Hundreds of thousands of students and employees learned this morning that ITT Technical Institutes has canceled all classes and is closing permanently.
CBS4 first reported last week that the college chain was stopping new student enrollment after the federal government banned the school from accepting any more students with federal aid.
The serious federal action was a huge blow for the school since ITT Tech makes most of its money from that aid. Some say the school may not survive the ban.
ITT Educational Services, Inc. issued the following news release this morning announcing the permanent closure.
"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. With what we believe is a complete disregard by the U.S. Department of Education for due process to the company, hundreds of thousands of current students and alumni and more than 8,000 employees will be negatively affected.
The actions of and sanctions from the U.S. Department of Education have forced us to cease operations of the ITT Technical Institutes, and we will not be offering our September quarter. We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a non-profit or public institution.
Effective today, the company has eliminated the positions of the overwhelming majority of our more than 8,000 employees. Our focus and priority with our remaining staff is on helping the tens of thousands of unexpectedly displaced students with their records and future educational options.
This action of our federal regulator to increase our surety requirement to 40 percent of our Title IV federal funding and place our schools under "Heightened Cash Monitoring Level 2," forced us to conclude that we can no longer continue to operate our ITT Tech campuses and provide our students with the quality education they expect and deserve.
For more than half a century, ITT Tech has helped hundreds of thousands of non-traditional and underserved students improve their lives through career-focused technical education. Thousands of employers have relied on our institutions for skilled workers in high-demand fields. We have been a mainstay in more than 130 communities that we served nationwide, as well as an engine of economic activity and a positive innovator in the higher-education sector.
This federal action will also disrupt the lives of thousands of hardworking ITT Tech employees and their families. More than 8,000 ITT Tech employees are now without a job – employees who exhibited the utmost dedication in serving our students.
We have always carefully managed expenses to align with our enrollments. We had no intention prior to the receipt of the most recent sanctions of closing down despite the challenging regulatory environment that now threatens all proprietary higher education. We have also always worked tirelessly to ensure compliance with all applicable laws and regulations, and to uphold our ethic of continuous improvement. When we have received inquiries from regulators, we have always been responsive and cooperative. Despite our ongoing service to this nation's employers, local communities and underserved students, these federal actions will result in the closure of the ITT Technical Institutes without any opportunity to pursue our right to due process.
These unwarranted actions, taken without proving a single allegation, are a "lawless execution," as noted by a recent editorial in The Wall Street Journal. We were not provided with a hearing or an appeal. Alternatives that we strongly believe would have better served students, employees, and taxpayers were rejected. The damage done to our students and employees, as well as to our shareholders and the American taxpayers, is irrevocable.
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."
Stephanie Wilson of the Indiana Commission for Higher Education says they heard from Indiana Wesleyan University about a transfer agreement with ITT Tech. The university is willing to assist the state with displaced students. Details about how that will work are still being ironed out.
Additionally, a CBS4 viewer sent us the letter she received from ITT Tech regarding information about the future.
Important Information for You Going Forward
Please be assured that we are committed to keeping you informed about the impact on you of the closure of your school.
To that end, below is some key information to answer, what we imagine are, some of your immediate questions:
How do I see my grades?
You may access your academic record via the Student Portal by clicking this link. Please use your student email and network password to login. We expect to have all grades for the June 2016 quarter updated by Friday, September 9th.
How do I obtain a copy of my official transcript?
You may request a copy of your official transcript via the Student Portal by clicking this link. Please use your student email and network password to login. Graduates may also request an official transcript via the Alumni website by clicking this link.
Will my credits transfer to another institution?
As always, the decision to accept transfer credits is up to the receiving institution. You may view a list of other schools that have entered into articulation agreements with the ITT Technical Institutes at www.itt-tech.edu/articulation. Additionally, we have compiled a list of schools in your area that offer similar programs of study, as well as some institutions offering similar programs online, which you may want to contact. See the following question for a list of schools.
Are there any schools in my area with similar programs of study?
Click here to download a list of schools in your area with programs of study similar to those offered by your school, as well as some institutions offering similar programs online.
When is the last day my campus will be open?
While your campus will be closing immediately at the end of the June quarter, we will continue to provide resources to assist you in obtaining your transcript and other records. Please check the Student Portal by clicking this link for updated information from us about the issues covered in this notice and other important matters. In the near term, you may also email StudentQuestions@itt-tech.edu with questions.
In the future, after the Student Portal is no longer accessible, how do I obtain a copy of my records?
After your campus has closed and the Student Portal is no longer accessible, you will be able to obtain your records and other key contact information at www.itt-tech.edu. This site will house links to request your transcript, education verification, and other information.
Will I have to repay my student loans?
It may be possible for you to discharge your federal student loans and not have to repay them under certain circumstances. For more information about this, please click here.
Please know we are extremely disappointed to have to discontinue our operations after more than 50 years of serving students.
We want to thank all of the men and women who have diligently served you throughout your studies at ITT Technical Institute. We, and they, apologize for this unexpected disruption to your education and we sincerely wish you the best as you move forward.