Super Cali goes ballistic, IT school is hopeless: Tech boot camp ITT frozen by edu officials
Doubts linger over for-profit US-wide college's finances
For-profit college chain ITT Technical Institute is facing further sanctions as the US government and the state of California have ordered the school to stop accepting new students.
Citing ongoing financial problems with the school, the US Department of Education (DOE) has barred the school from taking any new students who rely on federal aid money, out of concerns that the school will go under before those funds can be repaid.
"To protect prospective students and taxpayers, we're no longer allowing ITT to enroll new students with federal aid," the DOE said.
"In addition, in case the school's actions cause it to close, we're increasing the amount of cash reserves it must send us and we're ending its installment payment plan for the amount previously required."
This after the DOE said it has spent the past two years working with ITT to get its financial matters in order and address concerns from creditors that the school may not be able to stay afloat and pay back its debts.
ITT has long pitched itself as a training school for professions such as IT, CAD, and nursing and health science fields. The company has for years been subject to scrutiny and criticism over its finances.
As a result, the DOE says it will not trust any more of its student aid money to the school for the time being. Students who are already enrolled at ITT with financial aid will be allowed to continue courses and will have the option to transfer to another school that accepts ITT course credits.
The DOE added that those who have already graduated from ITT will continue to have their certifications recognized as valid credentials.
"You completed your degree at an operational and accredited institution," the DOE said. "Nobody can take away your credentials or the skills you gained."
The state of California, meanwhile, is taking things a step further by ordering the school [PDF] to stop accepting any new enrollments at its 15 California locations as of September 1.
The decree, issued by the Department of Consumer Affairs, Bureau for Private Postsecondary Education, cites the financial issues and says "there is a substantial failure by the Institution to meet institutional minimum operating standards related to financial resources and accreditation standards."
ITT did not respond to a request for comment at the time of publication. Its website has a banner across it reading: "We are currently not enrolling new students." ®