JACKSONVILLE, Fla. — ITT Technical Institute is to close all its academic operations nationwide following federal actions, the company announced Tuesday.
The institution had 130 for-profit schools nationwide, including a campus in Jacksonville.
The closure was forced after actions of and sanctions from the U.S. Department of Education, according to a statement from ITT Educational Services, Inc.
ITT Technical Institute has been under increasing scrutiny from the education department following allegations of misconduct, fraud and questionable marketing practices.
"We have always carefully managed expenses to align with our enrollments. We had no intention prior to the receipt of the most recent sanctions of closing down despite the challenging regulatory environment that now threatens all proprietary higher education. We have also always worked tirelessly to ensure compliance with all applicable laws and regulations, and to uphold our ethic of continuous improvement. When we have received inquiries from regulators, we have always been responsive and cooperative."
The closure came 12 days after the U.S. Department of Education banned the school from enrolling additional students using federal financial aid programs.
The closure affects more than 40,000 current students and caused more than 8,000 employees to be without a job.
"Effective today, the company has eliminated the positions of the overwhelming majority of our more than 8,000 employees. Our focus and priority with our remaining staff is on helping the tens of thousands of unexpectedly displaced students with their records and future educational options."
The fall semester was reportedly to start on September 12.
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“I’m so upset. I can't even focus right now,” Korema Brantley said.
It’s a sentiment felt by thousands. When ITT Tech students tried to go campus today or to pick up materials, no luck. The doors were locked.
Brantley, who just finished her nursing degree, said she's devastated.
“I’m being told there will not be a graduation or a pinning ceremony for us. I'm a single mother. I have made many sacrifices to (come) down from Savannah three or four days a week here,” she said.
“A little lost. I just want to find out what's going to happen. What's going to happen next? I was planning to start looking for a job as an engineer this week. Now, I don't know,” electrical engineering graduate Elias Leal said.
Students received an email saying if they're currently enrolled, they could apply to get their money back. At this point, they've been told credits cannot transfer to another school, but they would be kept up-to-date.
Our calls to corporate headquarters in Indiana have gone unreturned.