The for-profit college chain ITT Educational Services is shutting down its campuses days after the US Department of Education banned it from enrolling new students who use federal financial aid, reports the AP. The company, which operates vocational schools, announced "with profound regret" in a statement Tuesday that it is ending academic operations at all of its more than 130 campuses across 38 states. The education department's sanctions came after a group that accredits ITT said it failed to meet rudimentary standards. Federal authorities said they moved to protect both taxpayers and students.
As one of the biggest for-profit chains in the nation, ITT had been under increasing scrutiny from the education department following allegations of misconduct. The Massachusetts attorney general sued the company in April, alleging that it misled students about the quality of its programs. The federal government had previously sued the chain, saying that it pushed students into high-cost private student loans knowing they would likely end in default. (More education stories.)
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