By Post Staff Report - The New York Post
Another for-profit college is close to failing.
The owner of ITT Technical Institutes said Monday it would stop accepting new students, according to an announcement on its website.
The move came after the Department of Education banned parent company ITT Educational Services from enrolling students who use federal financial aid.
While ITT could have accepted students who found other ways to pay for their education, the decision to halt enrollment underscores the degree to which for-profit colleges rely on federally subsidized student financial aid.
The notice on their website was clear: ITT Technical Institute is no longer accepting new students.
The for-profit technical training school has more than 130 campuses in 39 states, including one in Robinson just off Parkway West.
KDKA money editor Jon Delano went there on Tuesday to try to get some answers about what is going on, but no one would talk.
For more than a year, current and former students have been sounding the alarm that ITT Tech is a scam college that has been preying on students for years. They've been demanding that the school shut down and that the Department of Education cancel the student loans of all students who attended the school. To make their voices heard, students have been:
-Burning their Degrees
-Protesting on the street
-Protesting on campus
-Making their voices heard on social media
-Speaking out at the Department of Education's negotiated rulemaking session in Washington DC.
-Submitting hundreds of Defense to Repayment applications and demanding debt discharges due to ITT Tech's criminal behavior.
This week, the Department finally gave in to the pressure.
The federal government has issued what analysts are calling a death sentence for ITT Technical Institute, while offering assurances that the for-profit college chain's students will be taken care of.
The Education Department on Thursday handed down a series of devastating restrictions that could put Carmel-based ITT Educational Services Inc. out of business within weeks. The government banned ITT from enrolling new students who depend on federal aid, the source of most of the company's revenue, and required it to warn current students that its accreditation is in jeopardy.
By KP Whaley - Wisconsin Public Radio
Reporter: Privatization Of Student Loan Companies, Reduced Funding From Government Have Led To Crisis.
College costs and student debt are much-talked-about issues in this year’s election cycle. Costs have soared and public investment into universities has declined over the years.
In Wisconsin, Gov. Scott Walker announced plans this week to extend the University of Wisconsin System tuition freeze in the next two-year state budget. And both presidential candidates have made tuition costs and student debt platform issues in their campaigns, but a new investigation reveals that many are profiting from the student debt crisis.
For years, DeVry University, like other big for-profit colleges, forced its students to sign agreements that they would take any dispute with the school to private arbitration, rather than sue in court. When, this year, it appeared that the U.S. Department of Education was moving in the direction of banning or limiting such mandatory arbitration agreements for colleges that get federal student aid, DeVry, to its credit, reversed course and announced on May 13 an end to forcing students into arbitration.
Embattled University of California, Davis, chancellor Linda Katehiresigned Tuesday, more than three months after being placed on administrative leave by system president Janet Napolitano.
Ms. Napolitano said Tuesday that she had accepted Ms. Katehi’s resignation, effective immediately. Ms. Katehi was being investigated over allegations of nepotism, including questions about her son’s employment and title changes and significant raises for her daughter-in-law.
Student loan borrowers appear to be safe from a potential flood of robocalls that consumer advocates once feared were imminent.
The Federal Communications Commission released a rule Thursday limiting the number of robocalls companies collecting debt on behalf of the government can make to borrowers without their permission. In issuing the new rule, the FCC was implementing a controversial directive Congress tucked into the federal budget bill last year, which created an exception to the Telephone Consumer Protection Act — a 1990s-era law that prohibits companies from robo-calling consumers’ cell phones without their permission — for companies collecting debt on behalf of the federal government. That would mean that those with student loan debt could receive robocalls on their mobile phones, without their express permission, related to their outstanding federal student loans.