LEXINGTON, Ky. (WTVQ) The U.S. Department of Education has banned ITT Technical Institute from enrolling new students who use federal financial aid.
The announcement comes amid a series of measures from the federal government that could force the for-profit college chain to close.
ITT Tech has been under state and federal investigation for its recruiting and accounting practices.
The Education Secretary says the government is taking action to protect students and tax payers from what he calls troubling findings about the company.
As of right now, the Department of Education says current ITT Tech students can continue receiving federal grants and loans but the school has to come up with a plan that will help those students finish their programs at other colleges if the chain shuts down.
ABC 36 tried to reach out to ITT Tech’s Lexington campus but was directed to headquarters. We have not received a response.
Below is information for current ITT students from the U.S. Department of Education’s official blog:
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’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.