WASHINGTON — ITT Educational Services Inc., which runs the ITT Technical Institute chain of for-profit schools, will close all of its campuses and cease operations after the Department of Education cut off new student access to federal student loans.
The Carmel, Indiana-based company has more than 130 campuses across the country, including locations in Chantilly and Springfield, Virginia.
“With what we believe is a complete disregard by the U.S. Department of Education for due process to the company, hundreds of thousands of current students and alumni and more than 8,000 employees will be negatively affected,” ITT said in a statement.
The federal government last month also said it would require the company to increase collateral to cover possible losses to the Education Department should it go out of business.
ITT says that requirement forced it to conclude it can no longer continue to operate its campuses. The school says it was not provided with a hearing or a chance for an appeal.
ITT had recently faced allegations of misleading students on their employment potential after graduating.
Bloomberg News reports that ITT also faces pending lawsuits from the Consumer Financial Protection Bureau, the Securities and Exchange Commission and the Massachusetts attorney general.
