Staffers file suit against ITT Tech over nationwide campus shutdowns

CENTRAL FLORIDA — Students, teachers and faculty were shocked Tuesday to find out that ITT Technical Institute was immediately shutting down its campuses nationwide.

In response, some ITT Tech employees have filed a lawsuit against the company, saying they should have had more notice.

Under federal law, the company should have given employees a 60-day notice before the mass shutdown, the suit alleges.

The closures come after an Aug. 25 order from the U.S. Department of Education barring the school from enrolling students receiving federal financial aid.

The move would have required ITT Tech to post a letter of credit, or make a cash deposit, in the amount of $250 million, the company announced in its letter to students.

Nursing student Antoinette Pierce couldn’t believe she wouldn’t be continuing her education at ITT Tech.

"Why weren't we told? I feel like I was misled. I feel defrauded. I feel betrayed,” she said. “You know, I had all of my hopes into the school. I depended on them to get me through this program.”

She’s one of 40,000 students impacted by the closures.

The DOE also put a freeze on the receipt of all Pell Grants and student loans.ITT Technical Institute is closing all campuses nationwide, effective immediately, after an Aug. 25 order from the U.S. Department of Education barred the school from enrolling students receiving federal financial aid.

The move came after the DOE required ITT Tech to post a letter of credit, or make a cash deposit, in the amount of $250 million, the company announced in its letter to students.

"Why weren't we told? I feel like I was misled. I feel defrauded. I feel betrayed. You know, I had all of my hopes into the school. I depended on them to get me through this program," said nursing student Antoinette Pierce said.

The DOE also put a freeze on the receipt of all Pell Grants and student loans.

“(The requirements) we believe are unprecedented in the history of the Department of Education,” the letter said.

READ: Full text of letter from ITT Tech to students announcing closure

““(The requirements) we believe are unprecedented in the history of the Department of Education,” the letter said.

“We proposed alternatives to the Department of Education, but they were rejected,” ITT Tech said. “Therefore, after evaluating the impact of these new requirements on our institutions, we have made the very difficult decision to discontinue our operations effective immediately at the end of the June 2016 quarter.”

In an Aug. 25 release, the DOE outlined why it imposed the restrictions on ITT Tech.

“Our responsibility is first and foremost to protect students and taxpayers,” U.S. Secretary of Education John B. King Jr. said. “Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds.”

ITT Tech had 130 campuses in 38 states and enrolled students in online programs nationwide, the DOE said.

Senator Bill Nelson sent a letter to the U.S. Department of Education urging the feds to, “Work closely with students and keep them fully informed of the company’s intentions to reimburse them.”

In 2015, the company reported almost $850 million in revenue, of which about $580 million came from federal aid funds, the department said.

According to the ITT Tech website, the closures will affect more than 40,000 students across the country.

The U.S. Department of Education said the school has been the target of numerous state and federal investigations in recent years, and has faced allegations of fraud and deceptive marketing practices.

The Department of Education said students who were close to graduating might be able to transfer their credits to other schools, but others might be able to start over and have their federal student loan debt wiped clean.

Important Information for You Going Forward

Please be assured that we are committed to keeping you informed about the impact on you of the closure of your school.

To that end, below is some key information to answer, what we imagine are, some of your immediate questions:

How do I see my grades?

You may access your academic record via the Student Portal by clicking this link.  Please use your student email and network password to login.  We expect to have all grades for the June 2016 quarter updated by Friday, September 9.

How do I obtain a copy of my official transcript?

You may request a copy of your official transcript via the Student Portal by clicking this link.  Please use your student email and network password to login.  Graduates may also request an official transcript via the Alumni website by clicking this link.

Will my credits transfer to another institution?

As always, the decision to accept transfer credits is up to the receiving institution.  You may view a list of other schools that have entered into articulation agreements with the ITT Technical Institutes at www.itt-tech.edu/articulation.  Additionally, we have compiled a list of schools in your area that offer similar programs of study, as well as some institutions offering similar programs online, which you may want to contact.  See the following question for a list of schools.

Are there any schools in my area with similar programs of study?

Click here to download a list of schools in your area with programs of study similar to those offered by your school, as well as some institutions offering similar programs online.

When is the last day my campus will be open?

While your campus will be closing immediately at the end of the June quarter, we will continue to provide resources to assist you in obtaining your transcript and other records.  Please check the Student Portal by clicking this link for updated information from us about the issues covered in this notice and other important matters.  In the near term, you may also email StudentQuestions@itt-tech.edu with questions.

In the future, after the Student Portal is no longer accessible, how do I obtain a copy of my records?

After your campus has closed and the Student Portal is no longer accessible, you will be able to obtain your records and other key contact information at www.itt-tech.edu.  This site will house links to request your transcript, education verification, and other information.

Will I have to repay my student loans?

It may be possible for you to discharge your federal student loans and not have to repay them under certain circumstances.  For more information about this, please click here.

For additional information on student financial aid and other options available, please also see information provided by the U.S. Department of Education available by clicking here and here.

For additional information on GI Bill benefits, please contact the U.S. Department of Veterans Affairs Education Call Center at 1-888-442-4551 or visit the GI Bill website by clicking here.

Cox Media Group