On Friday, September 16th, ITT Educational Services filed for Chapter 7 bankruptcy protection. The decision led to ITT closing more than 130 of their colleges this month, affecting approximately 35,000 students and 8,000 employees.
ITT’s move to file bankruptcy comes after the Department of Education barred them from enrolling new students who receive federal aid, which was a critical source of ITT’s revenue. ITT Education Services “has faced increased scrutiny by the Education Department since 2014 and has been accused by both federal and state regulators of misleading students about the quality of its programs and their employment potential after graduation. The Consumer Financial Protection Bureau filed a lawsuit against ITT two years ago, accusing the company of predatory student lending.”
You can read the New York Times article here.