U.S. Sen. Richard Blumenthal said the Department of Education announced two weeks ago, "it would place additional restrictions on ITT Tech and increase oversight to protect students and taxpayers."
Consumer Financial Protection Bureau, and Securities and Exchange Commission sued ITT Educational Services Inc. Blumenthal's office said the They added that the company is "under investigation by at least 18 state Attorneys General."
"The actions of and sanctions from the U.S. Department of Education have forced us to cease operations of the ITT Technical Institutes, and we will not be offering our September quarter," the company said. "We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a non-profit or public institution."
U.S. Sen. Chris Murphy said he "applauded the sanctions, which prohibited ITT from enrolling new students with federal aid."
“ITT Tech executives were running a fraudulent business funded by taxpayer dollars, and the Department of Education was right to impose sanctions. Now, the Department must work with ITT Tech to make sure its students can transfer credits, pursue a closed school discharge, and get their money back,” Murphy said in a statement on Tuesday.
Murphy urged Department of Education to look into seeing if they can hold executives of the ITT Technical Institutes "personally liable."
"Because after years of executives pocketing federal dollars, students shouldn’t be hung out to dry with taxpayers footing the bill,” Murphy said
Blumenthal said ITT Tech "has cheated students, taxpayers, and veterans for far too long."
“Now that this bad actor has collapsed under the weight of its own wrongdoing, we must do everything we can to ensure that its former students aren’t left holding the bag. Students left in the lurch – buried under mountains of debt with little to show for it – should be given relief,” Blumenthal said in a statement on Tuesday.
.@ITTTech cheated students, taxpayers & vets. Now it has collapsed & we must ensure former students aren’t left buried under debt w/nothing.
A majority of the 8,000 ITT Tech employees will lose their jobs, the company said. ITT stopped enrolling students last week, according to a post on the company's website.
“And today’s news should put the entire for-profit college industry on notice: predatory practices, the exploitation of taxpayers, and the deception of students have no place in our higher education system,” Blumenthal said.
Blumenthal is a ranking member of the Senate Committee on Veterans’ Affairs and said he is working to author bipartisan legislation for veterans, whose education benefits through the Post-9/11 GI Bill, affected "permanent closure of certain educational institutions" such as ITT Technical Institutes.
“The pernicious, predatory exploitation of our veterans by for-profit schools is a truly egregious problem that must be stopped. ITT’s closure is only the most recent example of bad actors in the for-profit college industry failing to serve our nation’s student veterans. The thousands of student veterans whose Post-9/11 GI Bill benefits are impacted by ITT Tech’s demise shouldn’t lose their opportunity to pursue higher education. This legislation’s protections are needed now more than ever,” Blumenthal said.
.@ITTTech closing should put for-profit college industry on notice: predatory practices & deception of students have no place in higher ed.