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ITT Tech shuts down ALL schools, students to get loan forgiveness


Lion Heart

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Lion Heart

The company that operates ITT Technical Institutes said Tuesday it was permanently closing all its campuses nationwide, blaming the recent move by the U.S. Education Department to ban the for-profit college operator from enrolling new students who use federal financial aid. 

The shutdown will affect about 35,000 students who were preparing for the start of classes this month and cost more than 8,000 employees their jobs.

But those students and those who left the school within the past six months would be eligible to have loans for their ITT education forgiven if they want to start over at another school, federal officials said. 

The Education Department has begun reaching out to students as well as community colleges near ITT campuses, which are being encouraged to be flexible in allowing ITT students to transfer their credits.

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The company has operated vocational schools on more than 130 campuses in 38 states, often under the ITT Technical Institute name. Last year, it enrolled 45,000 students and reported $850 million in revenue. 

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Sen. Richard Blumenthal (D-Conn.) said ITT’s announcement “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.”

“ITT Tech has cheated students, taxpayers and veterans for far too long,” he said. “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.”

http://www.latimes.com/business/la-fi-itt-tech-20160906-snap-story.html

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Lion Heart

 

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Lion Heart

Flop thread :diane: 

 

We should be celebrating this. :giveup: 

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Economy
On September 6, 2016 at 6:41 PM, Lion Heart said:

Flop thread  

 

We should be celebrating this.  

Celebrating?

 

Kids gotta either start over or loose loans (since they only get it forgiven if they start at another school)

 

Big inconvinience for these guys

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Lion Heart
16 minutes ago, Economy said:

Celebrating?

 

Kids gotta either start over or loose loans (since they only get it forgiven if they start at another school)

 

Big inconvinience for these guys

Hmm.. you make a point..

 

But at the same time For-Profit Schools such as ITT Tech and others are scamming hundreds of thousands, perhaps even millions of vulnerable students who sincerely believed they were getting their money's worth, and it was time the Federal Government did something about this predatory behavior. 

I know it's awful for those who were enrolled to learn about the true nature of these For-Profit colleges, but at least now more people are aware of the scam and this will save future prospective college students time and money that can be better spent in Community Colleges, Universities, etc. 

John Oliver touches on this subject and on how For-Profit colleges drive up the US student debt: 

4:20

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Economy
17 minutes ago, Lion Heart said:

Hmm.. you make a point..

 

But at the same time For-Profit Schools such as ITT Tech and others are scamming hundreds of thousands, perhaps even millions of vulnerable students who sincerely believed they were getting their money's worth, and it was time the Federal Government did something about this predatory behavior. 

I know it's awful for those who were enrolled to learn about the true nature of these For-Profit colleges, but at least now more people are aware of the scam and this will save future prospective college students time and money that can be better spent in Community Colleges, Universities, etc. 

John Oliver touches on this subject and on how For-Profit colleges drive up the US student debt: 

4:20

Yeah. I agree it just sucks that the students currently enrolled got stuck with the hot potato

 

But honestly certain things are a drain on the economy if run for profit. Healthcare, Education, Electricity, Water...

 

Certain things just shouldnt be run by private sector unless the Government is really incompetent

 

Dont mean to sound anti-profit tho. I very much believe the private sector on most things is more innovative and efficient than the government could ever be

 

But certain basic services just shouldnt be private

 

For example healthcare has no elasticity in prices with demand... And these services have a horrible ripple effect rating. In some industries a dollar spent there indirectly ripples thru whole economy... In some industries it just gets sucked in and depleates people money and doesnt do economy any good

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