This morning thousands of ITT tech students learned that school would not be starting up next semester. Instead, the school would be permanently closed.
The closure comes on the heals of the Department of Educations decision to prevent ITT tech from accepting any new federal student loan borrowers. The Department of Education identified a number of issues with lending for ITT Tech students, and as a result, haunted any further lending.
Because the for-profit institution was dependent upon federal student loans to operate; ITT decided to shut its doors.
In the big picture, we make look back on this event as a milestone in consumer advocacy and demanding more responsibility out of for-profit institutions. That is certainly the long-term goal behind the Department of Education’s actions.
In the short-term, 35,000 students no longer have a school to attend, and 8,000 people are out of jobs. Though the move may be for the greater good, the impact is potentially devastating for those working towards degrees or dependent upon an ITT Tech job.
What Should ITT Students be Doing?
If you or a loved one recently attended ITT Tech, there are a number of options to move forward. The Department of Education is advocating for local colleges to accept ITT Tech credits so that degrees can be completed. Alternatively, federal borrowers can get a closed school discharge. The Department of Education as created a website specifically for students affected by the ITT closure.
The closure of ITT Tech may represent a huge step forward in student loan borrower advocacy and higher education finance. Unfortunately, it is also a very sad day for thousands of innocent families.