The for-profit Technical Institute ITT Tech has announced they will cease enrolling new students. The move comes after the U.S. Department of Education banned the college from enrolling students who depend on federal loans to pay for classes.
The Consumer Financial Protection Bureau and over a dozen states are investigating ITT over financial performance, recruiting and job placement numbers.
“How much money they’re paying their top executives? Whether or not their organization is being run with integrity? Whether they’re financially viable? Whether they’ll be able to continue to serve students into the future?” explained Stephanie Wilson with the Indiana Commission for Higher Education.
“ITT is effectively out of business,” said Peter Appert, managing director senior research analyst at Piper Jaffray & Co, who follows ITT. “I don’t see any way they survive this.”
As CNN points out, the government has been cracking down on for-profit schools recently.
In May 2015, Corinthian College filed for Chapter 11 protection after coming under fire from federal regulators for alleged predatory lending practices and allegations it inflated its graduates’ job placement numbers.