ITT Technical Ins ute will cease all of its academic operations, eliminating most of its 8,000 employees effective today, after the government last month banned the for-profit college chain from enrolling new students who receive federal aid.
“The actions of and sanctions from the U.S. Department of Education have forced us to cease operations,” ITT’s parent company, ITT Educational Services Inc., said. “We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a nonprofit or public ins ution.”
ITT Technical Ins ute is facing accusations from its accreditor of chronic mismanagement of its finances and using questionable recruiting tactics. The parent company is also under investigation by state and federal authorities. ITT, which as of this spring was the fifth-largest for-profit college chain by revenue, says it runs more than 130 campuses in 38 states. It recently had about 43,000 students nationwide.
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