The for-profit college itt tech closed its doors for good on September 6, 2016. Here’s why.
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History of ITT Tech
ITT Tech was founded in 1946 and was one of the largest for-profit education companies in the US. The company offered a variety of programs, including associate’s, bachelor’s, and master’s degrees in a variety of fields. However, the company closed its doors in 2016 after many years of financial struggles.
ITT Tech’s beginnings
ITT Tech was founded in 1946 as a technical institute, providing training for students in engineering and applied science. The school was originally known as the Educational Services, Inc. (ESI), and was later renamed to ITT Corporation. The name change came about after the company acquired the Technical Education Division of the International Telephone & Telegraph Company in 1968.
ITT Tech experienced steady growth in its early years, opening new campuses across the united states By 1979, the company operated 37 schools in 27 states. In the 1980s and 1990s, ITT Tech expanded its reach even further, becoming one of the largest for-profit technical colleges in the country. At its peak, the company operated over 130 campuses across 39 states, serving tens of thousands of students each year.
However, ITT Tech began to experience significant financial difficulties in the early 2000s. In 2004, the company was forced to sell off its technical training division in order to stay afloat. Then, in 2006, ITT Corporation spun off its educational division into a separate public company called ITT Educational Services, Inc. (ESI).
Despite these financial troubles, ITT Tech continued to operate for many years. But then, in 2016, things took a turn for the worse. The U.S. Department of Education barred ESI from enrolling new students who rely on federal financial aid; this effectively cut off a major source of revenue for the company. Then, just weeks later, ESI announced that it would be closing all of its campuses across the country due to “financial and regulatory headwinds.” This decision Affected thousands of students and employees nationwide and brought an end to one of the largest for-profit education companies in America.
ITT Tech’s growth
ITT Tech was one of the largest for-profit technical colleges in the US. It was founded in 1946 and grew quickly, becoming a publicly traded company in 1986. By 2010, ITT Tech operated 130 technical institutes in 38 states. The majority of ITT Tech’s revenues came from federal student loans and grants.
In 2011, the US Department of Education began to investigate ITT Tech for possible fraud. The school was accused of using false advertising to recruit students, lying about job placement rates, and giving unfair bonuses to employees who recruited new students. In 2016, the Department of Education barred ITT Tech from enrolling new students who used federal financial aid money. This effectively ended ITT Tech’s growth and led to its eventual demise.
In September 2016, ITT Tech announced that it would close all of its campuses permanently. This decision affected over 40,000 students and 8,000 employees.
ITT Tech’s Closure
ITT Tech’s closure was the result of many years of financial struggles. The for-profit college had been under investigation by multiple federal agencies, and its accreditation was in jeopardy. These problems ultimately proved to be too much for the school, and it closed its doors for good in 2016.
The events leading up to ITT Tech’s closure
In the days leading up to ITT Tech’s closure, the for-profit college company was embroiled in multiple lawsuits and investigations.
The U.S. Department of Education had been investigating ITT Tech for years, and in August of 2016, the department issues a “heightened cash monitoring” status to the school. This meant that ITT Tech was at risk of losing its federal funding, which accounted for 90 percent of the school’s revenue.
Shortly after receiving the heightened cash monitoring status, ITT Tech was hit with two lawsuits. The first was a class-action lawsuit filed by former students who alleged that the school used deceptive practices to recruit them. The second lawsuit was filed by the Securities and Exchange Commission (SEC), which accused ITT Tech of defrauding investors.
The string of bad news continued when, in September of 2016, ITT Tech’s accrediting agency announced that it was placing the school on probation. This meant that the school’s accreditation was in jeopardy, which would make it difficult for ITT Tech to continue operating.
Then, in late September of 2016, things came to a head when the U.S. Department of Education announced that it was banning ITT Tech from enrolling new students who rely on federal financial aid. This effectively cut off all of ITT Tech’s revenue, forcing the company to shut down all of its locations just days later.
The aftermath of ITT Tech’s closure
The for-profit college chain ITT Tech closed all of its campuses in 2016 amid an investigation by the U.S. Department of Education. The closure left many students without a degree and saddled with debt.
The Obama administration had been cracking down on for-profit colleges, which were accused of preying on students and leaving them with high levels of debt and few job prospects. ITT Tech was one of the largest for-profit college chains in the country, with more than 130 campuses across the United States.
The company had been facing financial problems for years, and the closure came as a surprise to many students and employees. Some students were able to transfer their credits to other schools, but many others were left in the lurch.
The closure of ITT Tech was a blow to the for-profit college industry, which has been struggling in recent years. A number of other for-profit colleges have closed their doors in recent years, including Corinthian Colleges and Education Management Corporation.
Why Did ITT Tech Close?
On September 6, 2016, ITT Tech announced that it would be closing all of its campuses permanently. This came as a shock to many students and employees. ITT Tech was one of the largest for-profit colleges in the United States. So, what led to its closure? Let’s take a look.
Theories on why ITT Tech closed
There are a few different theories on why ITT Tech closed. One theory is that the Trump administration’s crackdown on for-profit colleges led to ITT Tech’s demise. This theory posits that the Trump administration’s policies made it difficult for for-profit colleges to operate, and ITT Tech was one of the casualties. Another theory is that ITT Tech was simply not a sustainable business model. This theory suggests that ITT Tech’s business model was not viable in the long-term, and that the company’s closure was inevitable. Finally, some people believe that ITT Tech was close because it was engaged in fraudulent activities. This theory suggests that ITT Tech was engaging in shady business practices, which eventually caught up with the company and led to its closure.
The impact of ITT Tech’s closure
The closure of ITT Tech has left many students scrambling to figure out what to do next. Some may be able to transfer their credits to other schools, but for many others, their investment in ITT Tech will disappear along with the school.
ITT Tech’s closure will also have a ripple effect on the economy. The school employed about 8,000 people, and those jobs will now be gone. Additionally, the school was a major source of revenue for many local businesses, from restaurants to hotels to stores. With ITT Tech gone, those businesses will likely see a decline in customers and may have to cut back or even close their doors.