On this page you’ll find information associated with the recent oversight and compliance actions imposed against ITT Educational Services and therefore the subsequent closure of ITT Technical Institutes. Featured below is information on how former ITT students can continue their education, apply for closed school loan discharges, retrieve student records, and more.
On Sept. 6, 2016, officials representing ITT Educational Services Inc., the parent company of ITT Technical Institute and Webster College, notified the Department of Education (ED) and therefore the postsecondary education oversight bodies within the 38 states where they need operating locations that they intended to cease online and classroom-based instruction and operations at the 136 ITT Technical Institute locations across the country. On Sept. 16, 2016, ITT filed a Voluntary Petition for Chapter 7 Bankruptcy within the us Bankruptcy Court for the Southern District of Indiana and subsequently ceased all company operations. As a result, all ITT Technical Institutes have lost their eligibility to receive federal student aid funds from ED.
If you attended an ITT school that closed while you were attending or soon after you withdrew, and you probably did not complete your program of study, you’ll be eligible for a closed school discharge. A closed school discharge may be a one hundred pc discharge of the federal Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans you took bent attend the closed school and a reimbursement of amounts you’ve got already paid to the govt .
Closure of ITT Tech Institutes. Student Loan Forgiveness now Available for Former Students
On September 6, 2016, ITT Educational Services declared that all of its ITT Technical Institutes were going to close. The closure of these institutions left 35,000 students without an educational path forward. Thousands of others across the country were impacted.
The majority of the former students are worried mainly about one issue. Will the Student Loan Forgiveness programs cover their loan debts? To find more about available student loan forgiveness programs you just need to scroll down this article.
The closure of ITT institutions is the result of increased regulation and sanctions from the U.S. Department of Education. ITT Tech has decided to terminate its operation. It was after the decision from the Department of Education to ban the for-profit vocational college from enlisting new students who relied on federal aid to pay for their education with them.
The news was a shock as the company had been in operation for more than 50 years since 1969 and before ITT Tech was permanently shut down. Until today, ITT Tech operated on over 130 campuses in 38 states. As a result, all ITT Technical Institutes lost their qualification to receive federal student aid funds from the Education Department.
However, questions continued to arise about the institution’s enrollment and accounting practices as well as its financial viability.
ITT Educational Services, Inc. published a press release on their website that blamed the government for the closure and the impact on students.
ITT Tech offered students an option to the traditional college course. As a for-profit organization, the school provided specialized training in targeted fields of study. In 2015 alone, it had over 45,000 students and $850 million in revenue.
The impact of the closure of ITT institutions
The closure of ITT leaves many students and graduates paying student loans from a now non-existent school. Many are concerned about how they will manage their student loans.
Fortunately, former students and recent graduates of ITT institutions may be eligible to have their federal, not private, student loans discharged as a result of the closure. All federal debt will be forgiven according to student loan forgiveness programs rules. Thus, students have the opportunity to continue their education or pursue their career goals elsewhere.
In 2019, if you attended ITT Tech between 2006 and 2016, you may qualify for ITT Tech student loan forgiveness benefits via either the Closed School Loan Discharge program or The Borrowers Defense To Repayment program.