Nearly 40,000 now-former ITT Technical Institute students are now left picking up the pieces after the for-profit college operator abruptly closed all 130 of its campuses this week. The Department of Education wants to help those students to be aware of all options — and to avoid getting pulled in by shady offers that are too good to be true.
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Search results for: for-profit college investigation

ITT Tech Closes All 130 Campuses
For the second time in two years, a billion-dollar for-profit education company has closed its doors leaving thousands of students stranded and billions of taxpayer dollars on the line: ITT Education Services has officially closed all 130 of its ITT Technical Institute campuses. [More]

California Bars ITT Tech From Enrolling New Students
A day after federal regulators barred ITT Education Services from enrolling new students using financial aid at its ITT Technical campuses, a California regulator prohibited the education operator from enrolling all new students at its 15 schools in the state. [More]

ITT Tech Banned From Enrolling New Students Using Federal Financial Aid
And just like that the foundation of ITT Education Services is beginning to crumble. Today, the Department of Education took a series of actions that bans the company behind the for-profit chain of ITT Technical Institutes from enrolling new students using federal financial aid funds. [More]

For-Profit ITT Expects New Student Enrollment Will Drop By Up To 60% This Fall
Facing multiple lawsuits, the possible loss of its accreditation (from an accrediting body that is in trouble on its own), and demands from federal regulators that it have enough cash on hand to cover losses in case things do collapse, ITT Educational Services now says it will likely see new student enrollment drop by up to 60% this year. [More]

For-Profit Educator Bridegepoint Education Under Investigation Over Federal Funding
Bridgepoint Education, the operator of for-profit colleges Ashford University and the University of the Rockies, added its name to the long list of higher education companies to find themselves on the receiving end of a federal investigation, as the Department of Justice has opened a probe into the organization’s federal student aid funding. [More]

Online Charter School K12 Hit With $169M Settlement For False Advertising Allegations
For years now, for-profit colleges have come under fire from federal and state lawmakers and investigators over allegedly misleading and deceiving prospective students into enrolling. Today, the state of California announced a $168.5 million settlement to resolve similar allegations, not with an institution of higher education, but with a for-profit online grade-school operator called K12. [More]

Advisory Panel Votes To Revoke Troubled College Accreditor’s Recognition
A week after staff with the Department of Education recommended the termination of federal recognition for the accrediting body that ignored red flags at failed for-profit educator Corinthian Colleges and allowed billions in federal aid to go to schools under investigation, the panel on the receiving end of that recommendation voted to sever ties with Accrediting Council for Independent Colleges and Schools. [More]

Proposed Rule Stops Colleges From Stripping Students Of Their Right To Sue
A recent study found that almost all of the nation’s largest for-profit college chains have enrollment agreements that block students from suing the school and prevent them from joining in class actions against these colleges. Following the 2015 bankruptcy and collapse of mega-chain Corinthian Colleges Inc., the sagging numbers at University of Phoenix, last week’s death knell for Brown Mackie College, and pending investigations and lawsuits against ITT and others, the Department of Education has decided that maybe these schools — which reap billions in federal aid each year — should probably have to be held accountable in a court of law when they screw students over. [More]

For-Profit Brown Mackie College Ceasing Enrollment, Phasing Out Most Locations
The nation’s second largest for-profit educator, Education Management Corporation – the operator of chains like Brown Mackie College, Argosy University and the Art Institutes – will stop enrolling students at most of its Brown Mackie locations while “teaching out” the students that remain. [More]

Elizabeth Warren Says Accreditor Of For-Profit Colleges Has “Dismal Record Of Failure”
Only days after a report found that an organization responsible for accrediting a number of for-profit colleges had engaged in a “pattern” of providing approval to schools with bad track records, resulting in these colleges receiving nearly $6 billion in federal funds, Sen. Elizabeth Warren is joining the chorus of voices calling on the Department of Education to take action.

Report: Accreditor Allowed $5.7B In Federal Funds To Go To Schools Under Investigation
Less than a week after California’s Attorney General urged the Department of Education to revoke federal recognition of Accrediting Council for Independent Colleges and Schools (ACICS) following its continued approval of for-profit education chain Corinthian Colleges Inc. up until the day the now defunct schools closed their doors, a new report reveals ACICS’s “pattern” of providing approval to schools with bad track records, resulting in the funneling of more than $6 billion in federal funds to those schools. [More]

Should Agency That Provided Accreditation To Corinthian Colleges Be Held Accountable In School’s Failure?
Up until the day it collapsed in 2015, for-profit education chain Corinthian Colleges Inc. was accredited by Accrediting Council for Independent Colleges and Schools (ACICS), one of the nation’s largest federally recognized accrediting bodies. With taxpayers potentially on the hook for hundreds of millions of dollars in forgiven student loans, the California Attorney General is calling on the Department of Education to revoke federal recognition of ACICS. [More]

University Of Phoenix To Stop Stripping Students Of Their Right To Sue School
A recent study found that student enrollment agreements at virtually all of the nation’s biggest for-profit colleges have forced arbitration clauses that strip students of their rights to file a lawsuit against the school, and in most cases bar students from joining their similar or identical disputes together. Under pressure from lawmakers and consumer advocates who questioned how these schools could continue to take billions in federal aid while trying to avoid accountability in the courtroom, the nation’s biggest for-profit educator has decided to stop using the controversial arbitration clauses. [More]

Midwest Career College Abruptly Closes Doors, Files For Bankruptcy
Thousands of students attending Wright Career College in Oklahoma, Nebraska, and Kansas are now scrambling to figure out how to finish their education after the school abruptly closed its doors and filed for bankruptcy. [More]

