According to the New York Times, complaints against ITT Tech included deceptive marketing; strong-arm recruitment tactics; misleading information about costs, courses, graduation and job placement rates; inflated enrollment numbers; bait-and-switch schemes; subpar instruction; and more.
Corinthian Colleges also abruptly shut their doors after allegations of deceptive acts in March. Each institution is different. To see updated developments for these sanctioned institutions click here.
In an attempt to support the students caught suddenly without the ability to continue their studies at ITT Tech, the DOE has stepped in to offer next steps. In a letter from Ted Mitchell, the secretary of education, students were provided two options:. As it stands, students taking option one may have to start over on their education to ensure their federal loan debt is completely forgiven. This presents many students with a challenge since many nonprofit schools with regional accreditation are reluctant to accept unaccredited, or nationally accredited courses.
The DOE has received thousands of emails and calls from students seeking guidance on how to move forward. CSU Global is working diligently to reach out to these students and support them as they map out their future goals. The landscape of education is changing with long established universities developing online models. Given ITT's overwhelming dependence on federal student aid, that decision essentially amounted to a death sentence. ITT is responsible for and deserved its demise. ITT demonstrated until the end that it was primarily a call center, not a college.
The next day, ITT wised up a bit, adding four words of acknowledgement that it was still in charge of a school. The Department of Education is finally stepping up to protect students and taxpayers. For years the Department of Education has allowed blatant abuses by for-profit colleges to go on. Senator Tom Harkin's blistering report on the egregious practices of ITT and other companies was issued more than four years ago, yet the Department has continued to send billions to these institutions.
One critical change is that, in the wake of the collapse of the awful predatory Corinthian Colleges, the Department has moved toward issuing new regulations to implement a long-ignored law that gives students who were defrauded the right to have their federal loans cancelled. Now that we are about to move into this defense-to-repayment era, I think the Department sees there will be much greater costs to bestowing its Good Housekeeping seal on predatory schools by making them eligible for federal aid.
So it sees more urgency in cutting off bad actors. That is good news. Under Secretary of Education Ted Mitchell told reporters on a conference call a few minutes ago that "over time" it became "irresponsible for us" to allow ITT to enroll new students. Today, when you hear experts, especially those seeking to blame the Department, talk about the costs of an ITT shutdown, please keep in mind that even if ITT stayed in business, former students could still apply for loan discharges on the ground that the company defrauded them.
ITT recruiters even manipulated prospective students using pain-based sales techniques. Recruiters were also encouraged to focus on prospective students eligible for military benefits, to maximize the amount of federal aid the college could receive.
In addition to internal documents that called for more aggressive recruitment from the military, executives also frequently talked about it among themselves. Enrollment was particularly high during the recession, when Americans were eager to seek new skills and find better jobs.
In , the school had more than 88, enrolled students compared to just 53, in Enrollments had a direct correlation with the amount of money ITT executives made in salary and bonuses every year. The Senate investigation also found ITT spent a large majority of its revenue on profit and marketing, rather than investing it into the curriculum, which was a red flag for federal investigators.
In short: ITT executives made it a point to funnel money from tuition revenue into their private accounts. They appealed to people who were watching television at odd hours and were unhappy with their lives. The brothers compliment each other and their family holds hands, wading through the waves. Then comes the call-to-action. While most of the databases and articles included in the pre-assigned class syllabuses were outdated, some did not even work at all because the subscription payment lapsed.
I thought that was a huge oversight. Valladares and other students say the technology taught at ITT was years outdated, and that many of the teachers were students only a few semesters ahead of the others. I was paying a lot of money for this school. I could have just done that from home. I would occasionally help the other students with the more hands-on stuff. Even if a teacher was inspired to create an interesting curriculum for the students, there was very little room to make a difference.
She explained that there was a corporate representative for each field of study such as the school of business or school of design in charge of creating the syllabuses for all campuses.
The company seemed to use every trick in the book and even made up its own when the feds aggressively pursued the company for misconduct. For example, when student loan defaults became an issue at dozens of campuses in , ITT consolidated them into two unanalyzable entities to avoid regulation. In , the FBI raided company offices in eight states looking for evidence of fraud relating to attendance, placement, and recruitment.
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