ITT Technical Institute Closes | Loans Can Be Discharged

closeditttechITT Educational Services, Inc. also known as ITT Technical Institute, headquartered in Carmel, Indiana since 1969, closed all of it’s school and according to it’s website, https://www.itt-tech.edu/, is not enrolling new students.  The closing puts an end to approximately 50 years of educational activity.

ITT released a statement saying, “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 nonprofit or public institution.”  You can view the entire statement here. 

What about the student loans for individuals attending?  The federal loans for individuals currently enrolled can either be discharged entirely or obtain a partial discharge, if a student elects to continue their studies at another institution.

The Department of Education’s Undersecretary, Ted Mitchell, said in a press call with reporters students have 2 options, “The first option is to have his or her federal loans discharged. Students who are currently enrolled at ITT Tech or who have withdrawn from ITT within the last 120 days may be eligible to have their federal student loans from their ITT program discharged through our closed school loan program. With their federal loan debt wiped away, students can then decide whether to restart their education somewhere new. To get started with the closed school process, students should call their loan servicer or visit studentaid.gov/ITT, which will be up and running shortly. We’ve taken care to ensure all of our servicers are providing helpful and accurate information about the closed school option to borrowers.”

“The second option is for students to continue their studies at another school. Students who are closer to completing their programs may wish to explore transferring their credits. It’s important for students to know that if they are able to transfer their credits into a similar program of study, some or all of their loans will no longer be eligible for discharge.”

ITT Tech had more than 130 institutes Nationwide, all closed, and eliminated 8,000 jobs nationwide as a result of the School’s closing.