Yesterday, ITT Technical Institute abruptly closed its 130+ campuses, leaving 40k students stranded and 8k former employees without jobs.
This decision comes a week after the US government imposed sanctions against the company, the most damning of which prevented ITT Tech from using federal financial aid to enroll new students.
Why’s Obama cracking down?
He hates their commercials. Just kidding… but they probably didn’t help.
The government’s decision to bar ITT Tech from federal aid is part of a wide-scale crackdown on for-profit schools, many of which have accepted billions of dollars in government grants and loans (ITT Tech alone received $580m in federal money last year).
There is, of course, nothing wrong with that. Providing federal loans to students seeking higher education is a fantastic use of tax dollars.
Many institutions — ITT Tech included — took it too far by preying on students who were oblivious to the lifelong burden of debt and had no business seeking a technical degree in the first place.
In fact, a recent report revealed that “students pursuing bachelor’s and associate’s degrees at for-profit colleges saw their earnings drop, compared to before they started the program.”
That means pretty much every party involved (your tax dollars, students, society as a whole) was losing… while ITT Tech was raking in the dough. Not gonna fly.
What’s next for current students?
Two options: Either apply to have their federal student loans forgiven or try to transfer their ITT credits to another school.
Also, expect an ITT Tech parody commercial illustrating the harsh reality as opposed to the “I got my degree at 36 and now I’m a millionaire!” bullsh*t within the next 72 hours. If it doesn’t happen, the internet should be fired.