ITT Banned From Enrolling New Federal Aid Students

Posted: Updated:
ITT has more than 130 campuses in 38 states. ITT has more than 130 campuses in 38 states.
CARMEL -

The U.S. Department of Education is banning Carmel-based ITT Educational Services Inc. (NYSE: ESI) from enrolling new students using federal aid. The department is also increasing its oversight of ITT, following the announcement by the Accrediting Council for Independent Colleges and Schools that ITT is not in compliance with accreditation criteria.

In a letter to ITT, the department said the school must also inform current students of its status with ACICS, is prohibited from awarding raises, paying bonuses or making retention or severance payments to executives and must inform the department of any "significant financial or oversight events including violations of existing loan agreements or extraordinary financial losses within ten days."

ITT must also use its own funds to cover any Title IV aid disbursements for current students. Once those funds have been given to students, the Department of Education will reimburse the school.

"Our responsibility is first and foremost to protect students and taxpayers," said U.S. Secretary of Education John King. "Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds."

The department says students currently enrolled at ITT can continue to apply for federal aid. ITT is also being required to develop teach-out agreements with other colleges in order for students to complete their coursework, should ITT close before that happens.

You can learn more about the U.S. Department of Education's actions against ITT by clicking here. You can also view the letter the department sent to ITT regarding the most recent sanctions below:

  • Perspectives

    • Investing Lessons from Mount Elbert

      With little mountain-climbing experience under any of our belts, a few friends and I decided to take on Mount Elbert, Colorado’s tallest mountain. While regular climbers may not consider this “Gentle Giant” a tall task, it was for us inexperienced climbers.  Is investing your “tall task”? If so, you can learn a lot from our experiences. And you won’t have to climb a mountain to do it!

    More

Events



  • Most Popular Stories

    • Purdue University ranks #7 for Best Value in a college education in the U.S., according to the Wall Street Journal

      Two Indiana Schools Break Top 50 List of Best Colleges

      The Wall Street Journal and the Times Higher Education magazine have released their annual list of the top 801 colleges and universities in the country. Two Hoosier universities are included in the top 50.

    • School District Raises Questions About ILEARN

      Like all schools in Indiana, we were disheartened at the ILEARN results for school year 2018. We would like to raise several questions concerning this test as it relates to college and career readiness for our students. The annual Indiana Statewide Assessment (this year’s ILEARN) has been developed to evaluate college and career readiness at all levels tested. We are very troubled by our lack of understanding of what indicators in the test evaluate...

    • Sports betting is now legal in Indiana

      Protecting Data Integrity as Sports Betting Grows in Indiana

      Casinos across the state are opening sports betting parlors this week, legally allowing gamblers in Indiana to place bets on professional and some collegiate sports. Some opponents of the law are concerned the integrity of sports is at risk. Others are worried about the integrity of the data used by odds makers in the now-legal betting houses. “There's a mechanism in place that can stop that from happening, or curtail it from happening in the future,” explains...

    • Purdue to Open Chick-Fil-A Amid Protests

      Citing overwhelming demand for Chick-fil-A’s food and services, Purdue University has announced it will allow the restaurant to open on campus. The university has been at the center of a debate over the Georgia-based food chain. 

    • Buttigieg to Lead Task Force on Automation

      South Bend Mayor Pete Buttigieg will Friday launch a task force aimed at preparing for the effects of automation at the U.S. Conference of Mayors Winter Meeting. The mayor's office says “Automation and the Impacts on America’s Cities” will include mayors from throughout the country.