In Focus: ITT Tech Closes All Campuses

By Aliah D. Wright Sep 13, 2016
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​Trump University is not the only for-profit school that's facing federal scrutiny.

ITT Technical Institute, one of the country's largest for-profit schools, announced last week that it was closing, leaving tens of thousands of students without an education and employees without jobs. Former workers are filing lawsuits.

(The New York Times)

Blame Game

ITT Tech blames the U.S. Department of Education for the closure of the 50-year-old school's 137 campuses nationwide. News reports put the number of currently enrolled students at anywhere from 30,000 to 45,000. More than 8,000 employees are without jobs.

The Education Department recently barred the institute from using federal funds to enroll students, citing the school's financial instability and problems with its accreditation, according to news reports.

Closures of these high-profile for-profit schools have "left thousands of students in limbo while raising questions about the future of an industry that provides training for vocational, technical and other mid-level skilled jobs," according to The Los Angeles Times. Devry University, the University of Phoenix and Trump University have each recently faced similar issues.

(The Los Angeles Times, CNN Money)

Lawsuits Abound

Employees at ITT Tech have filed lawsuits against the school claiming it violated the Worker Adjustment and Retraining Notification (WARN) Act.

They allege ITT Tech failed to give employees 60 days' notice that it was going out of business.

In August, a judge ruled that former Trump University students could sue Republican Presidential candidate Donald Trump for allegedly deceiving students about the validity of the curriculum and high pressure sales tactics to force them to pay tuition.  

(The Chicago Tribune), (The New York Times)

Other Schools Scrutinized

The University of Phoenix is currently under investigation for its claims about its degree programs and job placement rates. Devry University was sued earlier this year by the Federal Trade Commission for fraud. Corinthian Colleges Inc. was closed last year after it was fined $30 million for fraud, charging exorbitant rates and inflating the job placement stats of its graduates. The federal government announced it was erasing the debt of students who attended the school.

(The Huffington Post,) (CNN Money)

As HR Magazine reported years ago, employers must closely examine the credentials of those who retrieve degrees from places other than public colleges and universities. The must weigh the validity of online degrees as well.

(HR Magazine)

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