Anyone know whats up with ITT tech shutting down all its schools over night?
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Dept. of Education restrictions on ITT (Aug. 25)
A letter sent to ITT by the Department of Education banned the school from participating in Title IV, except under the following conditions:
Enrollment restrictions: ITT may no longer enroll new students who rely on federal financial aid dollars for educational expenses;
Disclosures to Students: ED is requiring ITT to inform current students that its accreditor has found that the institution is not in compliance, and is unlikely to become in compliance with its Accreditation Criteria;
Compensation and Payment Limitations: ITT is prohibited from awarding raises, paying bonuses or making retention or severance payments to its executives or to paying special dividends or out of the ordinary expenditures without department approval;
Notification of Financial Events requirements: ITT must inform the Department of any significant financial or oversight events including violations of existing loan agreements or extraordinary financial losses within ten days of such events; and
Title IV payment method requirements (Heightened Cash Monitoring 2): ITT is required to use its own funds to initially cover Title IV aid disbursements for current students. The Department will reimburse funds to ITT after aid is disbursed to students."
the Education Department put the hammer down on ITT Tech. They were taking Federal grant/loans from students and giving them degrees that essentially meant jack shit a lot of times. This was all for profit as well. The ED basically told ITT Tech they need to make some major changes before they will be allowed to resume taking federal money for schooling, to which ITT Tech said fuck you and left everybody high and dry. That is how I understood the situation.
