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El Reg reports
For-profit college chain ITT Technical Institute is facing further sanctions as the US government and the state of California have ordered the school to stop accepting new students.
Citing ongoing financial problems with the school, the US Department of Education (DOE) has barred the school from taking any new students who rely on federal aid money, out of concerns that the school will go under before those funds can be repaid.
"To protect prospective students and taxpayers, we're no longer allowing ITT to enroll new students with federal aid", the DOE said.
"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."
This, after the DOE said it has spent the past two years working with ITT to get its financial matters in order and address concerns from creditors that the school may not be able to stay afloat and pay back its debts.
[...] Students who are already enrolled at ITT with financial aid will be allowed to continue courses and will have the option to transfer to another school that accepts ITT course credits.
The DOE added that those who have already graduated from ITT will continue to have their certifications recognized as valid credentials.
[...] The state of California, meanwhile, is taking things a step further by ordering the school [PDF] to stop accepting any new enrollments at its 15 California locations as of September 1.
The decree, issued by the Department of Consumer Affairs, Bureau for Private Postsecondary Education, cites the financial issues and says "there is a substantial failure by the Institution to meet institutional minimum operating standards related to financial resources and accreditation standards".
We have previously discussed other for-profits in hot water.
(Score: 0) by Anonymous Coward on Thursday September 01 2016, @02:43AM
If I remember correctly, if your school closes down all your federal loans get forgiven. I wouldn't transfer. I'd stay until the end, maybe even staying an extra year if closure was a sure thing, then get all my loans forgiven when the school shuts down, and THEN go to a different college.
(Score: 0) by Anonymous Coward on Thursday September 01 2016, @03:09AM
We'll see if those ITT credits transfer.
(Score: 0) by Anonymous Coward on Thursday September 01 2016, @04:04AM
if your school closes down[,] all your federal loans get forgiven
Heh. That's a good one.
Now tell us the one about The Three Bears.
If I remember correctly
Welcome to the 21st Century, Mr. van Winkle.
Things have changed since Neoliberals grabbed control.
They rewrote the rules so that student debt is the only thing that can't be discharged via bankruptcy.
If you think they're going to let you skate for some other lame reason, you clearly don't have the tiniest grasp of modern finance.
-- OriginalOwner_ [soylentnews.org]