ITT Educational Services Inc. announced on Sept. 6 it would cease academic operations at all ITT Technical Institutes permanently, affecting more than 8,000 jobs.
The announcement came after the U.S. Department of Education on Aug. 25 banned ITT Tech from enrolling new students with federal loans. The department’s announcement was a major blow to the company, as nearly 70 percent of its revenue came from federal aid dollars last year.
“We believe the government’s action was inappropriate and unconstitutional,” said the company in a press release.
ITT Educational Services (NYSE: ESI) was a publicly traded company that owns ITT Tech Institute, which comprises more than 130 campuses in 38 states. Founded in 1946, the for-profit college chain was offering technology-oriented undergraduate and graduate degree programs and had nearly 45,000 students in 2015.
