CARMEL, Ind. -- The federal government ruled Thursday Carmel-based ITT Technical Institute can no longer enroll students who use federal loans.
In 2015, the government restricted federal money to ITT Tech after it could not account for millions of dollars it lost.
The US Department of Education is requiring the school to boost its cash reserves to cover potential damages to taxpayers and students.
They are also ending the school’s installment payment plan for the amount previously required.
This ruling from the department, that could potentially put the college chain out of business, comes in the middle of a crackdown on for-profit colleges.
According to a blog post by the Department of Education, “ITT Educational Services, Inc. (ITT) has increasingly been the subject of state and federal investigations and this year it has twice been found out of compliance with its accreditor’s standards. Over time, ITT’s decisions have put its students and millions of dollars in taxpayer funded federal student aid at risk.”
The ITT Tech website reads, “We are not enrolling new students.”
Those who are current students with federal loans can: continue courses at ITT with federal student aid, transfer credits to a new school or wait to see how the situation resolves itself in the coming months.