Need answers?
Students with questions regarding ITT’s closure can contact THEC at 615-741-5293 or online at tn.gov/thec.
More than 35,000 ITT students learned last week the technical school is shutting down and won’t open its campuses in Chattanooga and 130 other cities this fall.
“It’s devastating to me and I’m trying to figure out what to do next,” said Jake Oliver, who, after serving in the U.S. Army, earned a two-year program in electrical engineering technology at the local ITT Technical Institute last month.
“The classes and instructors I had were great, but I’m worried now how valuable my degree will be considered from a school that has shut down.”
The Indiana-based parent company ITT Educational Services said it is shutting down its campuses this fall due to the decision on Aug. 25 by the U.S. Department of Education to cut off the use of federal financial aid for ITT students. The closing forced the layoff of more than 8,000 ITT instructors and other employees.
The federal agency said too many ITT students were not graduating or were unable to find jobs after students received millions of dollars in federal students loans and grants to enroll in the school’s college programs in electronics, IT, business, criminal justice and nursing.
The Education Department ordered ITT to pay $152 million within 30 days to help cover student refunds and other liabilities if the chain closed.
Days before those sanctions were announced, ITT’s accreditor reported the chain had failed to meet several basic standards and was unlikely to comply in the future. It had also been investigated by state and federal authorities who accused ITT of pushing students into risky loans and of misleading students about the quality of programs.
Joanna Bailey, a 48-year-old former student of the ITT Tech School in Chattanooga from 2012-2015, said federal Pell grants and student loans totaled more than $30,000 for her night-time classes, yet she had to quit the program before she ever completed her associate’s degree. Bailey claimed she was charged for room and board in Chattanooga even though the local campus at the Eastgate Town Center has no dorms or student housing.
Bailey said she had a similar experience at McKenzie College before that private school closed.
“All of the money went to the school, but we had to fight just to get computer laptops and other supplies,” she said. “There were some good courses, but some of the instructors, in my opinion, were not very experienced and I know a lot of graduates didn’t land jobs as quickly as they had expected.”
On its website, ITT claims that more than 14,000 companies have hired ITT Tech grads.
ITT Educational Services CEO Kevin Modany told reporters on a conference call last week that ITT was the victim of a “regulatory assault” and never had the chance to defend itself.
“For what appears to be political reasons, there seemed to be an outcome in mind that was going to be forced here,” Modany said.
One of the biggest for-profit chains in the nation, ITT had been closely monitored by federal officials since 2014, when the chain was late to submit an annual report of its finances to the government.
About 200 ITT employees will help students obtain grade transcripts and apply to other schools, and the chain said it is seeking agreements with other schools that would help students transfer class credits.
The Tennessee Higher Education Commission said last week it will work with more than 1,900 students at ITT schools in Chattanooga, Cordova, Johnson City, Knoxville and Nashville with information and resources following the school’s announcement that it is closing.
Students who were enrolled at ITT within the last 120 days can apply to have their federal student loans erased by the Education Department. That’s an estimated $500 million worth of loans, a cost that would be covered by taxpayers and $90 million in insurance that ITT previously paid the department.
With many students trying to figure out how to handle the debt incurred from a college education – for which many will have no degree to show for it – Georgia Northwestern Technical College is hosting academic and financial advisement sessions to former students of ITT Technical Institute. The fifth-largest technical college in the state of Georgia, GNTC has campuses in Catoosa, Chattooga, Dade, Floyd, Gordon, Murray, Polk, Walker and Whitfield counties as well as online classes – and a course catalog similar to ITT’s, GNTC officials said.
All former ITT Technical Institute students are invited to the informational sessions Sept. 15 from 5-6 p.m. and Sept. 22 from 10-11 a.m. in Room A103C on the new Catoosa County Campus in Ringgold, Ga.
“We want to give them a real option, right here at home, that will allow them to continue their collegiate education,” said GNTC Vice President of Student Affairs Stuart Phillips. “At this time, we are thoroughly evaluating the best course of action to help these students. We just want to give each of them a chance to focus on what will be the best next step for them and their families.”
The Associated Press contributed to this report.