ITT Technical Institute Closes

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  • #23028
    Alfredo_T
    Participant

    I am a bit surprised that nobody has brought up the recent, sudden closure of ITT Technical Institute, and I have been curious about the circumstances that led to this event. According to Forbes, the closure was forced by the Department of Education. They required that the school’s parent company post a letter of credit worth $153 million, which proved not possible. These conditions were justified because Institute students make use of federal student aid.

    http://www.forbes.com/sites/prestoncooper2/2016/09/07/education-department-shuts-down-itt-tech/#c2f392d15e19

    In a further development, some former students are going on a debt strike, wherein they will refuse to pay back their student loans. The students are protesting what they believe to be the Obama administration’s failure in policing for-profit schools and the now-worthless status of their college credits. In regards to the latter, some alumni of ITT have been told by recruiters to avoid mentioning ITT in their resumes!

    http://www.chicagotribune.com/business/ct-itt-tech-students-debt-strike-20160914-story.html

    #23030
    Chris_Taylor
    Participant

    Been wondering myself. Is this a hidden indicator of difficult times ahead for our economy, not just for former ITT students? Or is this some bad management at one institution that got in over its head?

    Should be interesting to watch.

    #23031
    Vitalogy
    Participant

    It has nothing to do with the economy. What it has to do with is ITT has been identified as a for-profit college that relies on Federally backed government loans to operate and does not provide what it sells to students. Take away the Fed backing for loans and guess what? Out of business.

    We’ve also seen this locally with the scandal at Aequitas Capital in Lake Oswego and the Corinthian College collapse.

    http://www.oregonlive.com/business/index.ssf/2016/03/fast_times_on_kruse_way_aequit.html

    #23035
    radiodork
    Spectator

    Wow you can get an ASSOCIATES degree in nursing for only $60,000 at ITT tech, a fucking associates degree in nursing not a bachelors degree.
    WOW lets take advantage of students by charging an astronomical fee that they will never be able to pay off not to mention they will never be able to find a job because employers want bachelors degrees.

    All of these for profit schools need to be shut down permanently(not just ITT but all of them) and from what I understand there are plenty of for profit schools that have no accreditation or lose their accreditation and are still accepting students into their programs. WTF?

    And the biggest scam of these for profit schools is that none of your credits transfer to other schools, NONE! So if you make it halfway through the program or lets say you graduate BUT the program loses its accreditation you’re out 60,000 and need to start over from scratch, not to mention you will never find a job because no self respecting employer is going to hire anyone with ITT Tech on their resume.

    #23039
    Master of Disaster
    Participant

    Also, we have to remember that many of these places heavily advertise(d) on daytime TV during Jerry Springer and Judge Judy-type shows. This might have been good for the advertising industry and TV stations’ bottom lines, but obviously attracts the “I want something for nothing” crowd.

    ITT Tech students signed the loan paperwork. If they read it, they would knew they were applying for loans that must be repaid and usually can’t be discharged in bankruptcy. If they did even basic research, they could easily find local public colleges and universities with less expensive and probably better-accepted credentials. ITT Tech was in business only because people were gullible enough to rely on the sales pitch instead of conducting their own research.

    If anything, the government should seize 100% of their assets until principal, interest, and any penalties are paid in full.

    #23051
    Alfredo_T
    Participant

    According to the Forbes story, ITT Technical Institute had been plagued by high dropout rates, grade inflation scandals, and a reputation of using aggressive recruitment tacticts. Furthermore, a large percentage of its revenue came from government subsidies. On that last point, perhaps seizure of assets is appropriate.

    To me, something did not pass the “smell test” regarding ITT Technical Institute’s heavy use of daytime TV advertising. I tend to think of that audience as unskilled, mostly unemployed, and one not possessing the greatest intellectual prowess.

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