This For-Profit College Is Shutting Its Doors

This is the campus of ITT Technical Institute in Anaheim, Ca
UNITED STATES - MARCH 15: This is the campus of ITT Technical Institute in Anaheim, California, Monday, March 15, 2004. Eight officials at ITT Educational Services Inc. sold more than $27 million of stock in the 17 months between the time the technical school operator learned of a California attorney general's investigation into its practices and its first disclosure of the probe to investors last week. (Photo by Susan Goldman/Bloomberg via Getty Images)
Bloomberg Bloomberg via Getty Images

ITT Educational Services said it would discontinue operations at its ITT Technical Institutes, in line with the U.S. Department of Education’s directive, affecting more than 8,000 employees.

The for-profit education provider said Tuesday that the move would also affect hundreds of thousands of students and alumni.

“We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a nonprofit or public institution,” ITT said.

The company has been under investigation by government authorities for allegations of fraud and deceptive marketing tactics.

In August, the U.S. Department of Education banned the company from enrolling students who get federal aid.

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ITT’s accrediting agency said in April that ITT Technical Institutes, which provide career-oriented education programs, had not demonstrated compliance with certain accreditation standards.

The for-profit education sector has been struggling with falling enrollment, poor job placement records, and regulatory scrutiny.

ITT’s shares were halted in premarket trading.