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ITT Technical Institute was a for-profit technical institute that offered career-focused education and training programs in areas such as information technology, electronics, drafting and design, criminal justice, and business. The institute was founded in 1969 and had campuses across the United States.
However, in 2016, ITT Tech abruptly shut down all of its campuses and filed for bankruptcy after facing numerous lawsuits and investigations for deceptive and predatory practices, including misleading students about job placement rates and accreditation. This left thousands of students with unfinished degrees and significant student loan debt.
The closure of ITT Tech was a major blow to the for-profit education industry and raised concerns about the quality and accountability of such institutions. Despite its closure, former students of ITT Tech may still be eligible for loan forgiveness or other forms of relief through the U.S. Department of Education.
It acquired the financially struggling Daniel Webster College (DWC) in Nashua, New Hampshire in June 2009 for $29.3 million. The nonprofit college converted into a for-profit institution. In 2013, ESI began operating public charter schools in three cities: Indianapolis, Tempe, and Troy, Michigan. In charter documents, the company referred to potential students as “educational have-nots.”
ITT Technical Institute charged among the highest tuition fees in the industry – between $45,000 to $85,000 in 2014 – and had the industry’s highest rate of loans that went into default within two years of attendance.
In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3,000,000 shares of ITT Educational Services stock. In July 2016, ESI reported that enrollment was projected to drop by 30% to 40% from 2015 to 2016. In August 2016, the U.S. Department of Education barred the company from enrolling new students who use government loans. On the 30th of the same month, ITT Technical Institute stopped accepting applications for new enrollment.
At that time, ITT Tech said that existing students could still finish their studies. ITT Tech also said that they would continue to operate until the last of its enrolled students either graduate or drop out. However, on September 6, 2016, ITT Technical Institute announced that it was shutting down all of its campuses, effective immediately.
At the time of its system-wide closure on September 6, 2016, the school had more than 130 ITT Technical Institute campuses across the United States, with more than 40,000 students and 8,000 employees. ITT Educational Services filed for Chapter 7 bankruptcy liquidation on September 16, 2016.
As for DWC, Southern New Hampshire University (SNHU), a nonprofit college in Manchester, New Hampshire, hired most of the college’s faculty and staff. This arrangement allowed the 2016–17 academic year to proceed as usual. DWC’s aviation and engineering programs were effectively transferred into SNHU, which had offered to buy the Nashua campus. However, its bid got rejected, and SNHU instead opted to build a new on-campus science and engineering building.
