[3] The institute was owned and operated by ITT Educational Services, Inc., a publicly traded company headquartered in Carmel.
[15] Kevin Modany was appointed as CEO, while maintaining all of the positions (president, COO, and director) he had held from early June 2002.
[29] 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,[30] with more than 40,000 students and 8,000 employees.
DWC's aviation and engineering programs were effectively transferred into SNHU, which had offered to buy the Nashua campus.
[36] According to the College Scorecard, as of March 2016[update], 39% of ITT Tech graduates were paying off their debt, compared to the national average of 66% among all U.S.
[38] Students who attended ITT Tech may be able to have their debt forgiven by applying to the United States Department of Education for borrower defense to repayment.
"[42][43][44] In June 2019, Student CU Connect CUSO, a private lender for ITT Tech, settled with the Consumer Financial Protection Bureau and 44 states and the District of Columbia.
[3] Depending on student enrollment, class sessions at ITT Technical Institute campuses were generally available during the day and evening.
The courses for education programs taught online were delivered through an asynchronous learning network and had a prescribed schedule for completion of the coursework.
According to ITT Educational Services' annual report for the fiscal year 2015, 31 campuses and more than 400 programs were not meeting ACICS standards for student retention.
"[47] In April 2016, ACICS issued the company a "show cause" order to request information establishing why the accreditor should continue to accredit the institution.
In 2004, federal agents served search warrants at the company's headquarters and ten of its campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California, and Oregon, seeking various student records.
The CAG's investigation was in response to qui tam actions filed against the company under either state, federal, or both False Claims Acts.
The probe alleged that ITT Tech falsified records relating to student attendance, grades, and academic progress.
The involved employees alleged that it inflated students' grade point averages to qualify them for more financial aid from the State of California.
The CFPB alleged ITT used high-pressure tactics to coerce students into obtaining high-interest private loans that were likely to end in default.
[66] On October 19, 2015, the US Department of Education announced that because of the company's failure "to meet its fiduciary obligations" it was placed under additional scrutiny.
[67] In a 2015 federal whistleblower lawsuit, former ITT employee Rodney Lipscomb alleged the company used coercive tactics to enroll students who were unlikely to pass classes at the school; unlawfully paid sales commissions to recruiters; and lied to students about their financial obligations and transferability of ITT credits to other schools and career prospects.
[68] The same year, The California Department of Veterans Affairs (CalVet) temporarily ordered ITT Tech to stop enrolling new or returning students who fund their educations with GI Bill benefits.
[70] In 2016, Massachusetts Attorney General Maura Healey sued ITT Educational Services for allegedly "misleading and harassing students.
[73] Between 2004 and 2014, several states issued subpoenas or Civil Investigative Demands against ITT Tech under the authority of their consumer protection statutes: Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Tennessee and Washington.
[74] On August 25, 2016, the U.S. Department of Education banned ITT Tech from enrolling students who receive federal aid.
"[76][77] In April 2023, the Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud.