Increased Oversight of ITT and the Impact on Students

In recent years, ITT Educational Services, Inc. (ITT) has increasingly been the subject of state and federal investigations and this year it has twice been found out of compliance with its accreditor’s standards. Over time, ITT’s decisions have put its students and millions of dollars in taxpayer funded federal student aid at risk. In response, over the last couple of years, we at the Department of Education have increased our financial oversight over ITT and required the school to boost its cash reserves to cover potential damages to taxpayers and students.

These investigations are still ongoing and last week ITT still failed to address its accreditor’s concerns. In response, today we’re announcing further federal action: To protect prospective students and taxpayers, we’re no longer allowing ITT to enroll new students with federal aid. In addition, in case the school’s actions cause it to close, we’re increasing the amount of cash reserves it must send us and we’re ending its installment payment plan for the amount previously required. Finally, we’re slowing down when ITT receives student aid from the government to ensure that ITT is handling its finances properly.

As a current ITT student with federal loans, you have some options:

  1. You can continue your courses at ITT with your federal student aid. There’s no immediate change to your program.
  2. You can transfer your credits to a new school (if that school accepts them) and complete your education.
  3. You can pause your education and wait to see how this matter resolves itself in the coming months. If ITT closes before you finish your program and you don’t transfer your credits, you will likely be eligible to discharge your federal loans.

I imagine you have some questions. Let me try to answer a few of them for you.

I’m close to graduating. Can I finish my degree?

Yes, unless ITT chooses to close instead of continuing to teach students. If you’ve already started classes at ITT, you can continue using federal aid there as long as the school remains open. New students will not be able to use federal student aid for classes at ITT.

If ITT eventually closes, will I still have to repay my federal student loans?

If ITT closes you may be eligible for a closed school loan discharge. If we reach that point we’ll share information on that process as you consider your options through the Federal Student Aid’s announcement page.

I just recently enrolled at ITT, but I haven’t started classes yet. Can I still use federal aid?

No. If you are a new student who has never been enrolled at ITT in a previous semester, you cannot start classes at ITT in the fall semester of 2016 using federal student aid. I know this is probably a major disappointment and inconvenience, but it’s too risky. You should still pursue a higher education. You might want to use our College Scorecard to explore your options and find the program that’s right for you.

Will this impact my GI Bill benefits?

No. The U.S. Department of Veterans Affairs (VA) will notify affected GI Bill students that, at this point, the Department’s actions do not directly affect their GI Bill benefits. These actions, however, do raise significant concerns about ITT’s financial viability. Current GI Bill students at ITT should carefully consider the potential impact that the Department’s actions may have on their educational goals.

If you are a GI Bill student and have questions about your GI Bill benefits, please contact the VA’s Education Call Center at 1-888-442-4551 or visit the GI Bill website. If you are eligible for the GI Bill and want to explore your education options, you can use the GI Bill Comparison Tool to find the program that’s right for you.

I already completed my degree at ITT. Is it worthless?

No. You completed your degree at an operational and accredited institution. Nobody can take away your credentials or the skills you gained.

I already completed my ITT program but I feel like I was defrauded. Can I get my money back?

The actions we’re taking against ITT today are based on the operational and financial risk they pose to students and taxpayers, not on a finding that they defrauded students. There are, however, a number of open federal and state investigations into ITT campuses. If those investigations find evidence of fraud or other illegal behavior surrounding your specific program, you might be eligible for relief.   You can also go to Federal Student Aid’s borrower defense page to learn more about how to file a claim if you believe the school misled you.

I’m nervous that ITT may close and I don’t want to start over. Should I transfer my credits?

That’s an option. It’s a choice that only you can make and one that you should consider carefully. Each student’s circumstances will be unique.

Here are a few key things to consider:

  1. Whether your credits transfer will be up to the new school. It’s likely to vary based on the type of program and school you’re considering.
  2. If you transfer your credits, you may not be eligible to have some or all of your federal loans discharged if ITT ultimately closes.
  3. Before you transfer, ask yourself: Is the type of program I’ve started still the right one for me? Will finishing it open up the career opportunities I want? You may want to check out our College Scorecard as you think about the answers to those questions.

Where can I go to get updates on what’s happening with my school? What’s the most reliable place for information?

Your school should update you directly. We’ll also post updates if there are major changes on Federal Student Aid’s announcement page.

Ted Mitchell is U.S. Under Secretary of Education.

241 Comments

  1. Hi I want to know will I be able to get my diploma for the RN program since the ITT has closed I tried to transfer my ITT credit so I could complete my program but the school says itt was not were not nationally accredited school and won’take there credis now itt has shut it’s doors leaving students baffled and in debt who is there to talk to. Anyone know?

  2. I just finished my capstone class with one more class to go. i am worried how much further it is going to take me to get my degree? This is not an casual affair people’s future are at stake. It has been such a struggle to get this far, only to find it crumbling at the view of light at the end of the tunnel.
    I lost things in the process of striving to this degree i lost people that were dear to me, all for the future that is on rocky grounds. We need a resolution and we need it now. Education, time, assets, families were sacrificed.

  3. I finished all of my nursing courses at ITT Tech in 2013, but I never got a diploma for not passing the Hesi, the only thing that I got from them was $32000 dollars in debt. Do I qualify for loan forgiviness?

  4. I just recently enrolled at ITT in Richardson, TX , but I haven’t started my classes yet. According what I read I can’t use the federal aid but what about the loan? Are they (federal aid) going to charge me that loan when I never attended to school? What should I do about that? Can I use that aid in other school? I’m very worried about this. Thanks a lot for your time and help.

  5. After working for ITTESI for 11 years as an Educational Supervisor, then being fired in 2000, after filing an EEOC lawsuit in which the EEOC RULED in my favor. We informed the US dept of Education and ACICS THAT WE WERE MANDATED TO FALSIFY student attendance records by the Director Dennis W. Alspaugh, and Director of Education (now deceased) Robert Rizzo. It’s hard to believe that it took 16 years for these people to be exposed. Thank God another student of parent(s) will not have to ever be deceived again by this organization.

  6. I just finished my last quarter September 3rd and don’t know if I will be getting my degree or how to obtain my transcript. Is there anyone I can contact to find out that information?

    • Based off the information that was given to me through the many sites I went to, yes. Yes you will get a diploma in the mail but after they have reviewed all the transcripts of the students in your area. Since ITT is no longer in charge of the records another party must analyze and deliver them. So it may or may not take a while for it to be processed.

  7. I have learned a lot at ITT Tech in Dunmore PA. Just because the finances were taken away does not mean the quality of education we received was misleading. The lessons learned were not easy and the tests were real just remember that everyone. Those adjuncts took their personal time to teach everyone.

    • Yeah, and the Feds just ruined millions of students professional lives. Even us alumni will have our degrees viewed with 0 credibility thanks to these people. FYI… I used 0 student or federal aid.

  8. You are only eligible for a loan discharge IF you haven’t completed your program. Is this true? I completed ALL of the coursework but I haven’t received my degree and graduation was cancelled due to ITT’s closing. I want a loan discharge…will I be able to receive any?

  9. I have just finished the June quarter, will I be able to transfer my 12 credits to Community College Philadelphia ?

  10. I was suppose to participate in the ceremony for my Associates on September 29, 2016 and was planning on continuing for my bachelors. What do I do now? Am I getting a diploma for my hard work or can I get my loan discharged and start over?

  11. in 2013, I finished ITT-Technical with a Bachelors Degree in Engineering. Does all of this mean that my degree is null and void. Will i be notified if that is so.

  12. my name is Jibri Quinn i also was attending ITT-Tech i was scheduled to go back September 12, 2016 but now i can’t, but for me i plan on continuing my education at another school.

  13. Our school closed during our break. We were sent an email with links. We have 3 quarters left. Group in front of us was about to start their last quarter.
    We have put a ton of time & money into our RN education & now get to start over, because our credits do not transfer.
    Government needs to help the students find programs that will do a teach out or accept our credits.

  14. I graduated from ITT Tech back in 2013. I been struggling to pay my student loans. I have a mimume wage job. Now that ITT Tech is closing down. Does that mean, I am eligible for student loan forgiveness?? How can I apply??

    • I’m in the same boat! The jobs that I was going for, I didn’t have to go to ITT! Some of these jobs I had to do a non paying internship to have experience and at the same time, I had bills to pay. I’d appreciate ITT for what they have taught me but it feels worthless to be honest.

  15. I have an associates in visual communication, and I just completed all my classes to graduate with bachelors in project management on the 30th on September. Now this is what I have to go through? All of this work for nothing? What’s going to happen with this now? All of that time and money is virtually wasted? This is an outrage! It’s not fair. We all have worked hard and earned these degrees, and we should not have to suffer because of this.

  16. Trident University International is a regionally accredited online school that accepts ITT Tech Transfer credit. Contact me directly for a no obligation, free review of your transfer credits.

    Dr. Scott Amundsen
    scott.amundsen@Trident.edu

  17. I attended ITT Tech back in 1993. I never completed a degree because I wasnt happy with the school even way back then. Can I get the remainder of my federal loans discharged?

    • I’m wondering the same thing. I finished my degree in 2010, and it turns out they own the private financing company and they wouldn’t allow a loan to be deferred if you were not attending an ITT school for your next degree!

  18. I graduated from ITT west campus Houston 1993 – AAS CAD and paid off all my school loans. Am I die a refund? I feel I was cheated on job placement assistance and total interest paid on loans. Pls let me know my rights
    Thanks

  19. I just finished my degree program on September 4th and now I can’t get ahold of the school or anyone. My degree I went and worked hard for is virtually worthless, or what degree if the school closed I can’t even get the diploma , I am going to file for a discharge for the school closing yesterday 9-6-16 when I finished the program as of 9-4-16 , I got a cap and gown but was told there is now no ceremony … Now what! I went and finished online so I had to do the work a lot of it, does anyone have any suggestions??? Please contact me

    • Shame… and it’s harder knowing there are thousands of students all getting screwed, and we still owe them serious money.

  20. I graduated in 2014 with a bachelor’s in Cybersecurity. Does that mean the degree is worthless? And Do I have to repay my substantial loan? I have yet to have a job within the IT field.

  21. i have a question will my gi bill get refunded to the va since they wont let me finsih three classes to graduate or no is my gi bill money lost forever?

  22. “You completed your degree at an operational and accredited institution.”

    Every degree ever obtained from this institution has been significantly diluted. Where was your investigation 10 years ago when some form of corrective action could’ve been taken?

  23. I graduated in 2013 and receiving a diploma that can be printed off line. I have yet work in the filed that I have studied wasting two precious years. I will not pay the student loan for a degree that got me no where.

  24. We are done, 2 years of study wiped out, who is gonna consider a degree for school not exist?
    Now we are struggling to get a job with the school open.

  25. If I paid majority out of pocket do I get my refund? I did not complete the program. I was currently in progress of completing it.

  26. Will that happen to help graduates that are shackled to outrageous student loan payments? 2010-2013 Graduate

    The work I was forced to take with my Computer Network Systems degree netted me a job installing 2-way radios in light vehicles for a mine. (not even close to what I studied!!)

    I have been paying the minimum for 3 years now because that’s all I can afford. So my total loan amounts (37k for an AAS+ that surprise gap loan have to take out to graduate $2,700) have gone up!! Please help us!!

    I am so glad to see this is getting attention. So please remember us the current students AND the students that have been taken advantage of to get ITT where they are today.

  27. I graduated with an Associates degree and started on my Bachelor’s where can I go or talk to to access my transcrips?

  28. My daughter was enrolled in the nursing program and had 9 weeks to go until she graduated and this happens. The Earth City campus closed today and we need to know what schools she has an option to go to to finish up and if they will honor her accreditation and credits she already have. Please help us with this.

  29. If I graduated from ITT Tech about 2 years ago but I still owe student loans, is there any forgiveness for the remaining balance?

  30. I graduated and got an AA degree in Business last June of 2015. And as I was going to school I had my doubts about this institute, its questionable teachers and educating techniques. So, I decided to finish half term just to obtain the AA degree and to get out. I was left with a huge debt but now I’m glad, I didn’t continue. I have no clue if this degree is even worth it now. I can’t change this in my resume; and I’m wondering if potential hiring manager will look at this issue as a downfall or something negative.

  31. ITT Tech didn’t do anything for me but put me in debt. If I graduated from ITT Tech but still owe student loans, is there any way I can discharge my loans.

  32. If I graduated from ITT Tech but still owe student loans, is there any way I can discharge my loans. ITT Tech didn’t do anything for me but put me in debt.

  33. I need help paying back over $85,000 in loans that I spent on ITT through federal and private loans while attending ITT several years ago. Most of my check nowadays goes to paying those monthly studen loan bills.

  34. I am currently completing my remediation for the HESI retesting. I did not graduate because of the HESI, been almost 2 years now

  35. I was enrolled to start next week, these were my final two classes and then I graduate with my degree…..now what happens?

  36. I’m still paying my student loans from a degree in never finished. What will happen with those?

  37. I attended ITT Tech back in 2010. I never completed a degree. But I attended two semesters. How would I get my transcripts or my registration documents?

    • I have an Associates from their Clive, IA location from around that same time. They sent me an email today with a lot of helpful information and links for answers to these types of questions. My email is ccyaltr@yahoo, if you would like to email me, I can forward it to you.

  38. What are the options for the Nursing Students that are 1 quarter away from completing and taking the exam? Are there other Nursing schools in the Oklahoma area that will accept these students due to this special situation?

    • See my reply to Patricia Edwards question. Also, I believe you will have access to your account for a while to be able to log in to their site to find answers.

    • Check out this government page, it has a lot of information for ITT students: https://studentaid.ed.gov/sa/about/announcements/itt

      For information on how to access and obtain your student records and transcripts and to find out more about licensed institutions with similar programs in your area, contact your state postsecondary education agency and review the information ITT sent via email to enrolled students regarding the closure. You may also want to use ED’s College Scorecard to explore your transfer options and find the program that’s right for you

  39. I finished the June quarter, will there be a graduation September 29th? If not, will degrees be mailed to us?

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