By Andrew Pillow
A couple of weeks ago the U.S. Department of Education essentially banned ITT Tech from enrolling new students using federal financial aid. The reasoning behind the decision was, being out of compliance with their accreditor, and failing to provide an education that would secure graduates jobs in their chosen field.
This was essentially a deathblow to ITT Tech. The Indiana based company received the vast majority of its funding from federal student loans and grants. Thus, ITT Tech closed all of its doors permanently.
But where does this leave the students and employees?
What we know:
- Over 8000 ITT Tech employees have lost their jobs.
- 40,000 students are displaced.
- Government loans may be forgiven as they have in similar cases of university scams.
- Students may be able to transfer their credits to another institution but that would potentially make them ineligible for loan forgiveness.
The U.S. Department of Education has promised to make the transition as painless as possible for students, but there is no denying that this will send a major ripple through the education community.
Read more here.