ITT Announced Shut Down of All OperationsSeptember 7, 2016 | :
by Danielle Douglas-Gabriel
ITT Educational Services, one of the largest operators of for-profit technical schools, ended operations at all of its ITT Technical Institutes on Tuesday, citing government action to curtail the company’s access to millions of dollars in federal loans and grants, a critical source of revenue.
The move to shut down the chain of career schools after 50 years arrives two weeks after the Education Department said ITT would no longer be allowed to enroll new students who rely on federal loans and grants, award raises, pay bonuses or make severance payments to its executives without government approval. The department’s unprecedented move sent shares of the publicly traded company tumbling to an all-time low and raised questions about the future of the company.
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