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ITT Tech Shutters Campuses After Federal Aid Sanctions

Two Sacramento-area sites are among the 130 ITT Technical Institute campuses that are now closed. 

ITT says it was forced to shut down because of a decision by the U.S. Department of Education to bar the school from accepting any new students who are receiving federal financial aid.

Ted Mitchell is the Under Secretary of the U.S. Department of Education.

He says there about 40,000 ITT students with a combined $500 million in student loans.

"The accreditor says that they are not following minimal eligibility requirements, that their requirements for student achievement are out of whack and they're not doing much to remedy that, when they talk about a lack of institutional integrity, financial instability which is something also we've seen in our analysis."

He says the department is sending letters to community college presidents with a request to honor as many credits as possible. He also says students may receive student loan forgiveness if they give up on their current field of study.

"So, if a student goes to the same program, there wouldn't be any discharge. But, if a student were to transfer into a different program, then they are likely eligible for a discharge."

Desire was one student who drove to the Rancho Cordova location with the hope someone could tell her which colleges accept her credits.

"It would be nice if the junior colleges would take them to be able to just go there. You know they're not closing."

Almost all of its 8,000 employees were laid off.

The closures include the site in Rancho Cordova and another in the San Joaquin County city of Lathrop.

The company is based in Carmel, Indiana and says it has campuses in 38 states.