Embattled for-profit college company ITT Educational Services, Inc. is officially shutting down its academic services, the company announced on Tuesday. Most of the 8,000 employees working for the company’s for-profit college, ITT Technical Institutes — which has about 40,000 students attending around 130 campuses in 38 states — will lose their jobs.
The shuttering of the college comes as no surprise. Last week, ITT Tech stopped enrolling students at all of its campuses after the U.S. Department of Education prohibited the company from enrolling students who rely on federal student aid. And although this was the final nail in the coffin, ITT has been dealing with increasing scrutiny of its operations for years.
Last year, the department put ITT on the heightened cash monitoring list for filing its financial information late and the Securities and Exchange Commission announced fraud charges against two ITT executives. The SEC’s director of its division of enforcement, Andrew Ceresney, claimed that the executives “made numerous material misstatements and omissions in its disclosures to cover up the subpar performance of student loans programs that ITT created and guaranteed.”
In 2014, the Consumer Financial Protection Bureau sued ITT for predatory student lending, arguing that the college encouraged students to take out expensive private loans that they would most likely default on. And this year, Massachusetts Attorney General Maura Healey sued ITT for misleading job placement rates.
Good riddance. I feel terrible for all the people without the cultural capital to know better think that this was a good option for them and took out loans to do so.