ITT Tech Cancels Classes And Permanently Shuts Down All Its Schools

The for-profit college chain ITT Educational Services Inc. is shutting down its schools nationwide, shortly after the U.S. Department of Education banned it from enrolling new students who use federal financial aid.

ITT said Tuesday that it has canceled the academic quarter that was supposed to begin this month and laid off most of its 8,000 employees.

“Our focus and priority with our remaining staff is on helping the tens of thousands of unexpectedly displaced students with their records and future educational options,” ITT said in a statement.

The company has operated vocational schools at more than 130 campuses in 38 states, often under the ITT Technical Institute name. Last year, it enrolled 45,000 students and reported $850 million in revenue.

Last month, in addition to the ban on enrolling new students who used federal aid, the U.S. Education Department also prohibited ITT from awarding its executives any pay raises or bonuses and said it must develop “teach-out” plans that would help current students finish their programs at other colleges if the chain shuts down. Current students, it said, could continue receiving federal grants and loans.

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