(KTVI) - Thousands of students at ITT Tech got stunning news this week that their college was closing immediately. The closure comes on the heels of concerns and sanctions by the U.S. Department of Education about the company's "administrative capacity, organizational integrity, financial ability and ability to serve students." ITT then announced that they would have to shut down all 130 campuses, saying that they are unable to survive the recent ruling. The closure puts about 35,000 students in limbo as they try and figure out plans for the future.
ITT Tech employed an estimated 8,000 employees across the country. Several instructors interviewed say they had no idea that something was wrong behind the scenes and this caught them by surprise as well.
The Secretary of the Department of Education, John B. King, put out a statement on the departments web site. It reads in part;
If you are currently or were recently enrolled at ITT, you may be eligible to have your federal student loans for your program at ITT discharged.
Your federal loan debt will be wiped away and you will have the option of restarting your education somewhere new.
That statement also points out that if students enroll at other schools that will accept their credits, they likely won’t have federal loans wiped clean.