ITT Tech Closing: What It Means for Students and TaxpayersSeptember 8, 2016 | :
by Eva Botkin-Kowacki
ITT Technical Institute is shuttering its doors after the federal government banned the for-profit college chain from enrolling students with federal financial aid last week. The closure leaves over 40,000 students with halted education, and most of about 8,000 employees laid off.
This news isn’t just creating challenges for those connected with the chain of vocational colleges: it could also be bad news for taxpayers. As the closure of for-profit college giant Corinthian Colleges last year showed, students who took out federal loans could have them dismissed if they can prove the institution deceived them.