ITT Tech stops new student enrollment
- Author: Leroy Wright Aug 31, 2016,
Aug 31, 2016, 8:04
The Greenville institute is owned by ITT Education Services, a company based in Carmel, Indiana that runs 130 campuses in 38 states.
ITT Technical Institute stopped enrolling new students days after the federal government prevented the for-profit school's parent company from enrolling students who use federal financial aid.
Students enrolled at ITT Tech who have not begun classes are not allowed to use federal aid, as of Thursday's Department of Education ruling. "The expense of processing applications only to have them cancel once they learn [they are] Title IV ineligible is not worthwhile".
The Securities and Exchange Commission and more than a dozen states are investigating ITT over its financial performance, marketing, recruiting and job placement numbers. Most ITT students receive federal aid, the Indianapolis Star reported.
According to WSAC, which oversees ITT for eligibility in state financial aid and degree authorization, the majority of ITT students are recipients of either state or federal financial aid.
Several analysts have told IndyStar that federal sanctions, especially a new requirement that ITT increase its reserves from $94.4 million to $247.3 million, are likely to force the company to close.
ITT is under threat of having its accreditation revoked, which could lead its 137 campuses to close and result in students seeking loan forgiveness.
ITT Tech operates a campus at 17390 Dugdale Dr.in South Bend, but it halted new enrollment here in October 2015.
ITT's stock price continued to plunge Monday, dropping 19 percent to 44 cents per share.