ITT Tech Failure

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Part
01

ITT Tech Failure

Articles from reputable press, academic articles, or government documents regarding ITT Tech's closing are listed below. These articles also discuss the major reasons/factors that led to ITT's closing and who/what was to blame.

"ITT TECH CLOSES ITS DOORS"

  • This article can be accessed here.
  • The blame was placed by ITT Tech to the Education Department because the sanction given by the department required the institution to increase its existing surety from $94 million to $247 million which is equivalent to the 40% federal aid ITT Tech received in 2015.
  • According to the Education Department, due that the ITT Tech Institution had put its students and the money of taxpayer-funded federal student aid to high risk is what caused the institution to close.

"DEPARTMENT OF EDUCATION BANS ITT FROM ENROLLING NEW TITLE IV STUDENTS, ADDS TOUGH NEW FINANCIAL OVERSIGHT"

  • This article can be accessed here.
  • According to US Department of Education, in 2014, ITT was subject to financial investigation due to its late compliance and submission of annual compliance audits, financial statement reports, and post credit amounting to 10% of the "Title IV aid funding" received during the fiscal year.
  • ACICS questions ITT Tech in compliance with the ACICS accreditation standards. The following standards are questionable for ITT Tech:
    • "Minimal eligibility requirements for compliance with all applicable laws and regulations";
    • "Federal and state student financial aid administration requirements";
    • "Financial stability, including having adequate revenues and assets to meet its responsibilities";
    • "Administrative capacity, including overall management and record-keeping";
    • "ACICS admissions and recruitment standards";
    • "Requirements for student achievement, as measured by retention, placement, and licensure passage rate"; and
    • "Institutional integrity, as manifest in the efficiency and effectiveness of its overall administration of the institution".


"WHAT FORMER EMPLOYEES SAY ITT TECH DID TO SCAM ITS STUDENTS"

  • This article can be accessed here.
  • According to US National Public Radio, the aggressive recruiting contributed to ITT Tech's downfall. Because of this recruitment tactics, Department of Education ruled out and decided that the institution could no longer enroll students using the federal student aid loans.
  • This aggressive recruitment tactics made by ITT Tech was part of the growing industry trend where many for-profit colleges rely on third-party data brokers to deliver the contact information for their recruiters to call.

"ITT TECHNICAL INSTITUTES SHUT DOWN AFTER 50 YEARS IN OPERATION"

  • This article can be accessed here.
  • According to Senator Elizabeth Warren, the closure of the ITT Tech Institute is to be blamed on the institution's executives who gave low-quality educational programs to students just to increase the company's profit.
  • Senator Warren added that the institution was given the chance to make a comprehensive and corrective act via multiple warnings from the authorities but the institution continued its outright fraud.
  • According to the Senior Director for Post-Secondary Education at the Center for American Progress, Ben Miller, mismanagement of the ITT Tech's leaders was to blame why the US Department of Education made an authoritative action that forced the institution to a decision to close.
  • Miller added that the CEO and CFO of ITT Tech made a false statement about the two in-house student loan programs. The institution made a secret payment for the delinquent accounts to delay the defaults.
  • The ITT Tech Institute blame the government for causing a problem with the lives of the employees and families working for them.

"ITT EDUCATIONAL SERVICES CLOSES CAMPUSES"

  • This article can be accessed here.
  • According to ITT Tech, the decision of the US Department of Education that prevents all for-profit college institutions from enrolling new college students using federal financial aid is the reason why the institution was shut down.
  • According to the ITT Spokesperson, Nicole Elam, the decision made by the US Department of Education was inappropriate and unconstitutional and is ruled without proving the allegation against the ITT Tech.
  • Tedd Mitchell, the undersecretary of the US Department of Education revealed that the ITT Tech risk both students & taxpayers, and did not comply with the accreditation standards. The irresponsibility of the institution led them into such decisions.
  • There was a protest saying that the government has overreached accusing them to pursuing a political agenda and intentionally shutting down all for-profit college institution across the country.

"ITT TECH'S ROAD TO CLOSURE"

  • This article can be accessed here.
  • According to The Atlantic Report, ITT Tech blames the "actions and sanctions" of the US Department of Education for the permanently discontinued 50 years of academic operations of the institution.
  • The ITT Tech relies on the federal financial aid as the source of their funding and the institution was not able to continue its academic services due to the decision of the US Department of Education.
  • According to the authorities, ITT Tech has found out-of-compliance twice in 2016 involving Accrediting Council for Independent Colleges and Schools.
  • According to press news, the ITT Tech was charging its students with "tens of thousands" amount of tuition fee but was unable to give its students the valuable education they deserve. The worse part was that the institution left the students buried with debts.
  • The US Department of Education made a difficult choice with oversight of protecting students and taxpayers from potential educational risk and financial damage in the future.
Sources
Sources