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Why did ITT Technical Institute close?

The decision came after federal investigations found that the school, which shut down in 2016, had defrauded hundreds of thousands of students with false claims about their ability to get jobs or transfer credits and lied about the accreditation of its nursing program.

Are ITT Tech degrees still valid?

Is it worthless? According to the U.S. Department of Education, it’s not! You still completed your degree at an operational institution, so nobody can take that away from you.

ITT Technical Institute (ITT Tech) was a private for-profit technical institute with its headquarters in Carmel, Indiana and many campuses throughout the United States. Founded in 1969 and growing to 130 campuses in 38 states of the United States, ITT Tech was one of the largest for-profit educators in the US before it closed in 2016.

The institute was owned and operated by ITT Educational Services, Inc. (Expert Market: ESINQ), a publicly-traded company headquartered in Carmel. The company also owned and operated the Breckinridge School of Nursing and Health Sciences schools.

In 1998, an ITT Tech whistleblower reported on the school’s use of predatory recruitment practices. In 2004, federal agents raided campuses in 10 states. However, the school continued to settle legal cases and collect billions of dollars in Pell Grants and federal student loans. Finally, in August 2016, following state and federal investigations, the United States Department of Education prevented students from using federally guaranteed student loans at ITT Tech locations. All ITT Tech campuses were closed the following month and ITT Tech filed for bankruptcy.

In 2018, ITT Tech’s court-appointed bankruptcy trustee sued the United States Department of Education and lenders to repay $1.5 billion in claims against ITT alleging that regulators took advantage of low-income students and neglected their oversight duties.