Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy

ITT Tech is shutting down

Tony Wagner Sep 6, 2016
Share Now on:

As students around the country start fall semester this week, ITT Technical Institutes is shutting down. It will stop classes at its 130 campuses nationwide, and let go most if its 8,000-member staff, the Wall Street Journal reported. The closure is among the largest in history and it will affect around 40,000 students.

“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. We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a non-profit or public institution,” ITT Educational Services, the Technical Institutes’ parent company, said in a statement. “The damage done to our students and employees, as well as to our shareholders and the American taxpayers, is irrevocable.”

ITT had been in talks about transferring ownership, the Journal reported, though there was some dispute between the Education Department and the company over how far those talks got or how realistic they were. The fate of ITT’s brick-and-mortar school, Daniel Webster College, is still unclear, the Journal reported.

Enrollment in ITT and the for-profit college sector as a whole has dropped sharply as the government has made moves to more closely regulate the schools. For ITT, it seemed to be only a matter of time after the Department of Education issued new sanctions last month. The government said ITT couldn’t recruit students with federal financial aid, the source of 80 percent of the company’s revenue. The Education Department also told ITT to drastically increase its cash reserves, and the combination seemed to make continuing operations untenable.

“Basically they have to come up with about $153 million in 30 days,” Ben Miller with the Center for American Progress said at the time. “And normally, if I was a for-profit college, I would find this money by enrolling and recruiting new students.”

Listen to our full story about the sanctions below.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

Check Your Balance ™️
Check Your Balance ™️
Personal finance from Marketplace. Where the economy, your personal life and money meet.
How We Survive
How We Survive
Climate change is here. Experts say we need to adapt. This series explores the role of technology in helping humanity weather the changes ahead.