As recently reported in an article by WTHR, the ITT Technical Institute just announced that it will be closing its doors. Students of the institute received an email advising them that the fall term that was scheduled to start on September 12, 2016 is now officially cancelled.
According the school’s email, the Department of Education rejected the proposals by the school to continue its operations. The Department of Education had just decided to end all financial aid eligibility for the school, which accounted for about $580 million of the for-profit school’s $850 million in total revenue last year. As a condition of ITT being able to keep its doors open, the Department of Education required that they post up cash reserves or a letter of credit of at least $250 million. The crack down from the federal government on ITT is based on the school’s apparent failure to meet various accreditation requirements from the Accrediting Council for Independent Colleges and Schools.
The closure of ITT means that about 8,000 people will lose their jobs, and about 2,000 Indiana residents will need to find an alternative to finish earning their degrees. There were six ITT campuses across Indiana and another 130 throughout the U.S. There are about 40,000 students in total that are affected by the closure of ITT. They will now be scrambling to find alternatives to their financial aid funding along with another program through which to complete their degree requirements. Some students were just weeks away from graduation.