View source for ITT Technical Institute

{{Short description|Former for-profit technical institute}}
{{Infobox university
| name = ITT Technical Institute
| image_name = ITT Technical Institute campus Canton Michigan.JPG
| image_size =
| image_alt =
| caption = ITT Tech's [[Canton Township, Michigan|Canton, Michigan]] campus
| motto = Education for the Future
| established = {{start date|1969}}
| closed = {{end date|2016}}
| type = [[Private college|Private]] [[For-profit higher education in the United States|for-profit]] [[Vocational education|technical institute]]
| endowment =
| chairman = Darvey W. Hayes
| chancellor =
| president = Eugene W. Feichtner<ref name="ITT Official Website">{{cite web|url=http://www.ittesi.com/index.php?s=20|title=Management & Directors|access-date=2017-05-23|archive-date=2016-11-14|archive-url=https://web.archive.org/web/20161114080521/http://www.ittesi.com/index.php?s=20|url-status=dead}}</ref>
| vice-president =
| faculty =
| administrative_staff =
| students = 40,015<ref name="yahoo.com">{{cite web|url=https://finance.yahoo.com/news/itt-educational-services-inc-reports-103000451.html|title=ITT Educational Services, Inc. Reports 2016 Second Quarter Results|access-date=2017-01-15|archive-url=https://web.archive.org/web/20170214172722/http://finance.yahoo.com/news/itt-educational-services-inc-reports-103000451.html|archive-date=2017-02-14|url-status=dead}}</ref>
| undergrad =
| postgrad =
| doctoral =
| other =
| city = [[Carmel, Indiana|Carmel]]
| state = [[Indiana]]
| country = [[United States]]
| coor =
| former_names =
| sports =
| colors =
| colours =
| nickname =
| mascot =
| athletics =
| free_label = Campus locations
| free = Approximately 130 campuses
| affiliations = ITT Educational Services, Inc. (1994–2016)<br />[[ITT Corporation]] (1965–1994)
| website = {{URL|itt-tech.info}}
| logo = ITT_TI_logo.PNG
| footnotes =
}}

'''ITT Technical Institute''' ('''ITT Tech''') was a [[Private college|private]] [[For-profit higher education in the United States|for-profit]] [[Vocational education|technical institute]] with its headquarters in [[Carmel, Indiana]] and many campuses throughout the United States. Founded in 1969 and growing to 130 campuses in 38 states of the United States, ITT Tech was one of the largest for-profit educators in the US before it closed in 2016.<ref name="ITT 2015 10K">{{cite web|url=https://www.sec.gov/Archives/edgar/data/922475/000119312516504396/d129120d10k.htm |publisher=[[U.S. Securities and Exchange Commission]]|title=Form 10-K Annual Report - For the fiscal year ended December 31, 2015 |date=March 15, 2016}}</ref>

The institute was owned and operated by ITT Educational Services, Inc., a publicly traded company headquartered in Carmel.<ref name="ITT 2015 10K" /><ref>"[http://www.ittesi.com/phoenix.zhtml?c=94519&p=irol-faq FAQ] {{dead link|date=April 2017 |bot=InternetArchiveBot |fix-attempted=yes}}." ITT Technical Institute. Retrieved on November 23, 2011. "Our principal executive offices are located at: ITT Educational Services, Inc. 13000 North Meridian Street, Carmel, Indiana 46032"</ref> The company also owned and operated the [[Breckinridge School of Nursing and Health Sciences]] schools.<ref name="ITT 2015 10K" /><ref>{{cite web|url=http://www.breckinridgenursing.com/campus/|title=Breckinridge School of Nursing and Health Sciences @ ITT Technical Institute.}}</ref>

In 1999, two former ITT employees brought forth a lawsuit alleging the school used illegal recruitment practices, saying the school was "abusing that system for years and ripping off the government for billions of dollars." In 2004,
the Justice Department initiated a criminal investigation into ITT colleges in eight states.<ref>{{cite news |url=https://www.nytimes.com/2016/10/23/business/a-whistle-was-blown-on-itt-17-years-later-it-collapsed.html |title=A Whistle Was Blown on ITT; 17 Years Later, It Collapsed |last=Morgenson |first=Gretchen |date=October 21, 2016 |work=The New York Times |access-date=April 12, 2024 |archive-url=https://web.archive.org/web/20230404025433/https://www.nytimes.com/2016/10/23/business/a-whistle-was-blown-on-itt-17-years-later-it-collapsed.html |archive-date=April 4, 2023}}</ref>

Following state and federal investigations, the [[United States Department of Education]] prevented students from using federally guaranteed [[Student loans in the United States|student loans]] at ITT Tech locations in August 2016. All ITT Tech campuses were closed the following month and ITT Tech filed for bankruptcy.<ref name = "Chapter7">{{Cite web | url = http://www.ittchapter7.com/ | title = ITT Educational Services, Inc., et al. | access-date = October 31, 2016}}</ref>

In 2018, ITT Tech's court-appointed bankruptcy trustee sued the United States Department of Education and lenders to pay $1.5 billion in claims against ITT, alleging that in allowing loans to low-income ITT students, regulators neglected their oversight duties.<ref>{{cite web|url=https://www.educationdive.com/news/itt-trustee-sues-ed-department-lenders-to-help-pay-15b-in-claims/533054/|title=ITT trustee sues Ed Department, lenders to help pay $1.5B in claims|website=Education Dive}}</ref> Three years later, the US Department of Education allocated $1.1 billion in loan relief to an additional 115,000 former ITT Tech students.<ref>{{cite web |title=Extended Closed School Discharge Will Provide 115K Borrowers from ITT Technical Institute More Than $1.1B in Loan Forgiveness |url=https://www.ed.gov/news/press-releases/extended-closed-school-discharge-will-provide-115k-borrowers-itt-technical-institute-more-11b-loan-forgiveness |website=www.ed.gov |publisher=US Department of Education |access-date=9 September 2021}}</ref>

==History==
{{Infobox company
| name = ITT Educational Services, Inc.
| logo = ITT_TI_logo.PNG
| type = [[Public company|Public]]
| traded_as = {{OTC Expert|ESINQ}}
| fate = [[Bankruptcy]]
| foundation = {{start date and age|1946}}
| defunct = {{end date and age|2016|09|06}}
| hq_location = [[Carmel, Indiana]]
| key_people = Kevin Modany (President, CEO, COO, Director)
| former_names = Educational Services, Inc. (1946-1965)
| parent = [[ITT Corporation]] (1965-1999)
}}
In 1946, ITT Tech was established as Educational Services, Inc.<ref>{{cite web|url=https://www.nydailynews.com/life-style/itt-tech-institute-tv-ads-brand-building-best-article-1.2783203|title=ITT Tech Institute's TV ads were brand-building at its best |work=NY Daily News|first=Paul|last=Friederichsen|date=September 8, 2016}}</ref> From 1965 until its IPO in 1994, ITT Tech was a wholly owned subsidiary of the [[ITT Corporation]] (as "ITT/ESI").<ref>{{cite web|url=https://www.dailykos.com/story/2016/8/27/1564468/-The-Death-of-For-Profit-Colleges|title=The Death of For Profit Colleges|website=Daily Kos}}</ref> During its years in operation, it was based in [[Carmel, Indiana]].<ref>{{cite web|url=https://www.indystar.com/story/news/education/2017/01/11/look-inside-itt-techs-closed-carmel-headquarters/96118888/|title=A look inside ITT Tech's closed Carmel headquarters|website=Indianapolis Star}}</ref> By 1986, all its institutions had become known by the common name "ITT Technical Institute."{{citation needed|date=September 2016}} By 1999, ITT Corporation had [[divested]] itself completely of ITT Tech's shares. The schools were allowed to continue using the "ITT" name under license.<ref>{{cite web|url=http://www.ittesi.com/index.php?s=52|title=FAQ|website=ITT Educational Services, Inc. - Investor Relations|access-date=2018-01-10|archive-date=2018-01-11|archive-url=https://web.archive.org/web/20180111052704/http://www.ittesi.com/index.php?s=52|url-status=dead}}</ref>

In the mid-2000s, CEO Rene Champagne cashed out more than $50 million in stock,<ref>{{cite web|url=https://www.insider-monitor.com/trading/cik922475-2.html|title=Insider Trading Activities at Itt Educational Services Inc (ESI), Part 2|website=www.insider-monitor.com}}</ref> before stepping down from the position in 2007.<ref>{{cite news |url=https://www.reuters.com/article/idUSIN20070124073136ESI20070124 |title=ITT Educational announces that Rene Champagne, Chairman and Chief Executive Officer, will step down|publisher=[[Reuters]] |date=June 24, 2007}}</ref> Kevin Modany was appointed as CEO, while maintaining all of the positions (president, COO, and director) he had held from early June 2002.<ref>{{cite news |url=http://www.prnewswire.com/news-releases/itt-educational-services-inc-appoints-kevin-m-modany-as-president-and-chief-operating-officer-54417182.html|title=ITT Educational Services, Inc. Appoints Kevin M. Modany As President and Chief Operating Officer|publisher=[[PR Newswire]] |date=April 26, 2005}}</ref>

It acquired the financially struggling [[Daniel Webster College]] (DWC) in [[Nashua, New Hampshire]]<ref>{{Cite journal|url=http://www.chronicle.com/article/Parent-of-ITT-Technical/42800|title=Parent of ITT Technical Institutes Buys Nonprofit Daniel Webster College|journal=The Chronicle of Higher Education|author=Blumenstyk, Goldie|date=April 23, 2009|access-date=June 17, 2009}}</ref> in June 2009 for $29.3 million.<ref name="seacoast">{{cite web|url=http://www.seacoastonline.com/articles/20090504-NEWS-905040323|publisher=SeacoastOnline.com|title=N.H. College: Without sale, accreditation would go|date=May 4, 2009|access-date=August 17, 2017|archive-date=January 6, 2014|archive-url=https://web.archive.org/web/20140106195359/http://www.seacoastonline.com/articles/20090504-NEWS-905040323|url-status=dead}}</ref><ref name="telegraph">{{cite news|url=https://www.telegraph.co.uk/comment/6063012/A-level-results-grade-inflation-is-just-a-cruel-confidence-trick.html|title=A-level results: grade inflation is just a cruel confidence trick|work=Telegraph|date=2009-08-20}}</ref><ref>{{cite news|url=https://www.boston.com/news/local/massachusetts/articles/2009/07/03/financial_pressure_forces_reinvention_at_small_colleges|newspaper=Boston Globe|author=Jan, Tracy|title=Financial Pressure Forces Reinvention at Small Colleges|date=July 3, 2009}}</ref> The nonprofit college converted into a [[for-profit]] institution.<ref>{{Cite web|url=http://www.aero-news.net/index.cfm?ContentBlockID=e45d9b85-b3ea-4f38-9ce8-70c522a379df|title=Daniel Webster College President Fired|publisher=Aero News Network|date=August 7, 2009|access-date=September 17, 2016}}</ref> In 2013, ESI began operating public [[charter school]]s in three cities: [[Indianapolis]], [[Tempe, Arizona|Tempe]], and [[Troy, Michigan]].<ref>{{cite news|url=https://www.npr.org/sections/ed/2014/12/14/369925385/a-for-profit-college-tries-the-charter-school-market|title=A For-Profit College Tries The Charter School Market|publisher=[[NPR]] |last=Kamenetz |first=Anya |date=December 14, 2014 |access-date=2016-09-06}}</ref> In charter documents, the company referred to potential students as "educational have-nots."<ref>"[http://www.in.gov/icsb/files/the-early-career-academyapp-full.pdf The Early Career Academy Charter School: Application]".''Early Career Academy, Inc''. March 15, 2013. "Each of the 147 ITT Tech campus' student population represents the communities in which they reside, and we believe this will be observed with The Early Career Academy. Based on the 2012, data the average age of the ITT Tech student is 28 years old and one in five has an average of 26.9 hours of transfer credit; and 68 percent take advantage of Pell grant. This tells us they that many of these students have tried other postsecondary institutions and for some reason it did not work for them. It also tells us that they do not have substantial means. Many are the first in their extended family to graduate from college. Many of these students have lost a decade of productive work in a career and consequently have not entered the middle class. They are part of the educational have-nots and are at ITT Tech to reverse course. We believe that we will attract these same types of students a decade earlier allowing them to forego the lost decade. The Early Career Academy will eliminate the lost decade, providing entrance into the middle class, the American Dream and a career of which they can be proud."</ref>

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 (finance)|default]] within two years of attendance.<ref>{{cite web| url=http://programinfo.itt-tech.edu/cost.pdf| publisher=ITT Educational Services, Inc.| title=2014/2015 Total Cost of Attendance Table| access-date=2013-08-22| archive-url=https://web.archive.org/web/20131021061348/http://programinfo.itt-tech.edu/cost.pdf| archive-date=2013-10-21| url-status=dead}}</ref><ref name="clever_clever">{{cite web|url=http://online.barrons.com/article/SB50001424053111904857404577333971078578982.html|title=Clever Is as Clever Does|author=Bill Alpert|date=April 14, 2012|work=barrons.com}}</ref>

In 2016, Chinese investors Zhifeng Zhang and Yude Zhang became ESI insiders, purchasing more than 3,000,000 shares of ITT Educational Services stock.<ref>"[http://www.streetinsider.com/SEC+Filings/Form+4+ITT+EDUCATIONAL+SERVICES+For%3A+Jul+18+Filed+by%3A+Zhang+Zhifeng/11848677.html Form 4 ITT EDUCATIONAL SERVICES For: Jul 18 Filed by: Zhang Zhifeng]". ''ITT Educational Services Inc''. StreetInsider.com. July 18, 2016.</ref> In July 2016, ESI reported that enrollment was projected to drop by 30% to 40% from 2015 to 2016.<ref name="yahoo.com"/> 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.<ref>{{cite news |url=http://www.indystar.com/story/money/2016/08/29/itt-tech-ceases-all-student-enrollment/89531284/ |title=ITT Tech ceases all student enrollment |last=Briggs |first=James |publisher=[[The Indianapolis Star]] |website=IndyStar.com |date=August 29, 2016 |access-date=September 6, 2016}}</ref><ref name="Gizmodo 08302016">{{cite web| url=https://gizmodo.com/rest-in-peace-itt-tech-you-bastards-1785946020?rev=1472574882262 |last=Nunez |first=Michael |title=Rest In Peace ITT Tech, You Bastards |website=Gizmodo.com |date=August 30, 2016 |access-date=2016-09-06}}</ref> 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.<ref name="Gizmodo 08302016"/> However, on September 6, 2016, ITT Technical Institute announced that it was shutting down all of its campuses, effective immediately.<ref name="WJZ 09062016">{{cite news |url=http://baltimore.cbslocal.com/2016/09/06/itt-technical-institute-closes-all-campuses/ |title=ITT Technical Institute Closes All Campuses |publisher=[[WJZ-TV]] |date=September 6, 2016 |access-date=September 6, 2016}}</ref>

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,<ref>{{cite web |url=https://www.itt-tech.edu/campus |title=Our Campuses |publisher=ITT Technical Institute |archive-url=https://web.archive.org/web/20160422154153/https://www.itt-tech.edu/campus/ |archive-date=April 22, 2016}}</ref> with more than 40,000 students and 8,000 employees.<ref>{{cite news |first=Ashley A. |last=Smith |url=https://www.insidehighered.com/news/2016/09/07/itt-tech-shuts-down-all-campuses |title=The End for ITT Tech |website=[[Inside Higher Ed]] |date=September 7, 2016}}</ref> ITT Educational Services filed for [[Chapter 7, Title 11, United States Code|Chapter 7 bankruptcy liquidation]] on September 16, 2016.<ref name="Chapter7" />

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.<ref name=SNHU>{{cite news|url=http://www.unionleader.com/article/20160913/NEWS04/160919721|title=SNHU to 'rescue' Daniel Webster College|author=Hayward, Mark|newspaper=New Hampshire Union Leader|date=September 13, 2016|access-date=September 13, 2016|archive-date=January 14, 2017|archive-url=https://web.archive.org/web/20170114061832/http://www.unionleader.com/article/20160913/NEWS04/160919721|url-status=dead}}</ref><ref>{{cite news|url=http://www.unionleader.com/education/SNHU-offers-to-buy-Daniel-Webster-College-campus-09192016|title=SNHU offers to buy Daniel Webster College campus|author=Houghton, Kimberly|newspaper=New Hampshire Union Leader|date=September 19, 2016|access-date=August 17, 2017|archive-date=August 31, 2017|archive-url=https://web.archive.org/web/20170831004132/http://www.unionleader.com/education/SNHU-offers-to-buy-Daniel-Webster-College-campus-09192016|url-status=dead}}</ref> However, its bid got rejected, and SNHU instead opted to build a new on-campus science and engineering building.<ref>{{Cite web|url=http://www.snhu.edu/about-us/news-and-events/2017/01/daniel-webster-students|title=SNHU Welcomes Daniel Webster Students (and Programs) to Campus|author=Carley, Shane|publisher=Southern New Hampshire University|date=January 17, 2017|access-date=February 15, 2017}}</ref><ref>{{cite web
|url=http://www.wmur.com/article/snhu-will-not-buy-former-daniel-webster-college-campus-university-rep-says/10384402|title=SNHU will not buy former Daniel Webster College campus, university rep says|author=Swanson, Cassidy|date=July 30, 2017|access-date=July 31, 2017}}</ref>

==Student loan debt and debt relief==
In 2014, [[Time (magazine)|''Time'' magazine]] ranked ITT Technical Institute No. 2 on its list of "The 5 Colleges That Leave the Most Students Crippled By Debt".<ref name="TIME 5 Most Crippled">{{cite news |last=Clark |first=Kim |date=September 24, 2014 |title=The 5 Colleges That Leave the Most Students Crippled By Debt |magazine=Money.com |url=https://money.com/student-loan-default-factories/ |url-status=live |access-date=September 6, 2016 |archive-url=https://web.archive.org/web/20210518163351/https://money.com/student-loan-default-factories/ |archive-date=May 18, 2021}}</ref> Among ITT Tech graduates with loans due in 2011, 22% had defaulted by 2014. This statistic compares with a default rate of about 13.7% for student loans generally. According to the ''Time'' magazine report, ITT Tech's default rate ranked second. The for-profit [[University of Phoenix]] had a lower default rate by percentage (19% at Phoenix versus ITT Tech's 22%). However, the total number of students in default from Phoenix was much higher (45,123 Phoenix students versus 11,260 ITT Tech students).<ref name="TIME 5 Most Crippled" />

According to the College Scorecard, {{as of|2016|March|lc=y}}, 39% of ITT Tech graduates were paying off their debt, compared to the national average of 66% among all U.S. schools.<ref name="College Scorecard">"[https://collegescorecard.ed.gov/search/?name=ITT%20Technical%20Institute%20&sort=advantage:desc&page=1 ITT Technical Institute]". ''College Scorecard Data''. [[United States Department of Education]].</ref> This percentage represented the number of graduates  able to repay at least $1 in student loan debt in the three years after their graduation.<ref name="College Scorecard" />

In 2018, a settlement to a class-action lawsuit was tentatively reached to wipe out student loans for attendees from 2006 to 2016.<ref>{{cite web|url=https://www.bostonglobe.com/metro/2018/01/24/plan-bring-relief-itt-students-gets-preliminary/eGMijmjs2gOPA9N1PxZyeP/story.html|title=Plan to bring relief to ITT students gets preliminary OK |first=Deirdre|last=Fernandes|website=Boston Globe}}</ref> 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|borrower defense to repayment]].<ref>{{cite web| url = https://studentaid.ed.gov/sa/about/announcements/itt| url-status = dead| archive-url = https://web.archive.org/web/20160906164013/https://studentaid.ed.gov/sa/about/announcements/itt| archive-date = 2016-09-06| title = Important Information Regarding ITT Educational Services, Inc. {{!}} Federal Student Aid}}</ref> However, Secretary of Education [[Betsy DeVos]] announced on July 25, 2018, that the borrower defense rule would be rewritten and replaced with a stricter repayment policy starting July 1, 2019.<ref>{{cite magazine|url=https://www.rollingstone.com/politics/politics-news/betsy-devos-borrower-defense-703541/|title=Betsy DeVos' New Proposal Aligns Her With For-Profit Colleges Over Debt-Saddled Students|first1=Andy|last1=Kroll|magazine=[[Rolling Stone]]|date=25 July 2018}}</ref><ref>{{cite web|url=https://www.forbes.com/sites/prestoncooper2/2018/08/02/borrower-defense-trump-administration-sullies-otherwise-sensible-reforms/|title=Borrower Defense: Trump Administration Sullies Otherwise Sensible Reforms|first=Preston|last=Cooper|date=August 2, 2018|website=Forbes}}</ref> On December 13, 2018, a US federal court ruled that the department's decision to do this was "arbitrary and capricious." The court sided with plaintiffs in invalidating the stay put in place by the Department of Education. There will be an additional hearing on December 14, 2018, to "address remedies."<ref>https://www.mass.gov/files/documents/2018/09/12/borrower_defense_summary_judgement.pdf {{Bare URL PDF|date=March 2022}}</ref><ref>{{cite web|url=https://www.chicagotribune.com/news/nationworld/politics/ct-betsy-devos-student-loan-lawsuit-for-profit-colleges-fraud-20180913-story.html|title=Federal court rules against Betsy DeVos in student loan lawsuit over for-profit colleges fraud cases|first=Maria|last=Danilova |website=Chicago Tribune|date=13 September 2018 }}</ref><ref>{{Cite web|url=https://www.bankrate.com/loans/student-loans/itt-tech-settlement/|title=Federal Court Grants Relief For ITT Tech Students |last=Smith|first=Kelly Anne|website=Bankrate|language=en-US|access-date=2019-05-21}}</ref>

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. The settlement called for CUSO to forgive a reported $168 million in private student loans. CUSO agreed to stop collecting on, and discharge, all of the loans.<ref>{{cite news |last1=Hayashi |first1=Yuka |title=Students of Defunct ITT Tech to Receive $168 Million in Loan Forgiveness | url=https://www.wsj.com/articles/students-of-defunct-itt-tech-to-receive-168-million-in-loan-forgiveness-11560546961 |website=The Wall Street Journal |date=14 June 2019 }}</ref>

==Academics==
The school characterized ITT Tech students as "older and balancing family obligations with underemployment."<ref>{{cite press release|url=http://www.prnewswire.com/news-releases/itt-technical-institute-freezes-tuition-for-sixth-straight-year-300273974.html|title=ITT Technical Institute Freezes Tuition for Sixth Straight Year|publisher=ITT Educational Services}}</ref> The company's web site stated: "The programs employ traditional, applied and adult-learning pedagogies and are delivered through traditional, accelerated and distance methodologies in a learner-centered environment of mutual respect."<ref name="itt-tech.edu">{{cite web| url=http://www.itt-tech.edu| title=ITT Technical Institute| publisher=ITT Technical Institute| url-status=dead| archive-url=https://web.archive.org/web/20051025223746/http://www.itt-tech.edu/| archive-date=2005-10-25}}</ref>

ITT Tech offered associate, [[Bachelor's degree|bachelor's]], and [[master's degree|master's]] (business-only, online) degrees. The commonwealth of Pennsylvania was the only state which forbade ITT Tech to offer master's degrees.  {{as of|2015|December|31|df=US}}, the ITT Technical Institutes were offering 49 education programs in various fields of study.<ref name="ITT 2015 10K"/>

At the vast majority of campuses, ITT Tech organized the academic schedules based on four 12-week academic quarters in a calendar year, with new students beginning at the start of each academic quarter. Using that calendar, students taking a full course load could complete associate degree programs in seven or eight academic quarters, bachelor's degree programs in 14 or 15 academic quarters, or a master's degree program in seventeen academic quarters.<ref name="ITT 2015 10K"/>

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. At the vast majority of ITT Technical Institute campuses, the class schedule for education program residence courses and the coursework completion schedule for online courses generally provided students with the flexibility to maintain employment concurrently with their studies. Student surveys indicated that a majority of ITT Technical Institute students worked at least part-time during their programs. A significant portion of classes involved practical study in a lab environment.<ref name="ITT 2015 10K"/>

===Accreditation===
ITT Tech was [[Higher education accreditation in the United States#National accreditors|nationally accredited]] by the [[Accrediting Council for Independent Colleges and Schools]] (ACICS). 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.<ref name="ITT 2015 10K" /> Per the ITT Tech web site, "it is unlikely that any credits earned at an ITT Technical Institute will be transferable to or accepted by any institution other than an ITT Technical Institute."<ref name="itt-tech.edu"/> In April 2016, ACICS issued the company a "show cause" order to request information establishing why the accreditor should continue to accredit the institution. This order was in response to its programs being non-compliant with specific standards.<ref name="IHE 20160422">{{cite web| url=https://www.insidehighered.com/quicktakes/2016/04/21/under-scrutiny-itself-profit-accreditor-gets-tough-itt-tech| website=Inside Higher Ed| title=Under Scrutiny Itself, For-Profit Accreditor Gets Tough With ITT Tech| date=April 22, 2016}}</ref>

===Rankings===
In 2015, financial news site [[TheStreet.com]] ranked ITT Technical Institute-Seattle on a list of "10 Best U.S. Two-Year Colleges That Actually Pay Off."<ref name="McClay">{{Cite web|url=https://www.thestreet.com/story/13345275/7/10-best-u-s-two-year-colleges-that-actually-pay-off.html|title=10 Best U.S. Two-Year Colleges That Actually Pay Off|last=McClay|first=Rebecca|date=October 31, 2015|language=en-US|access-date=July 7, 2016}}</ref> According to TheStreet.com, ITT's Seattle campus ranked fourth in terms of alumni reporting rewarding careers, only after its sister ITT Technical Institute schools in [[San Antonio]], West Houston, and [[San Diego]].<ref name="McClay"/>

==Legal issues==

In September 1998, ITT Tech agreed to settle eight legal proceedings involving 40 former students arising out of their recruitment and education practices at ITT Tech campuses. The settlements cost $12.9 million, which included legal fees.<ref name="ITT 1999 424B4">{{cite web| url=https://www.sec.gov/Archives/edgar/data/922475/0000950131-99-000363.txt |publisher=[[U.S. Securities and Exchange Commission]]| title=Final Prospectus - Filed Pursuant To Rule 424(b)(4) |date=January 27, 1999}}</ref>

In Daniel Graves filed a whistleblower lawsuit against ITT Tech after a short stint working for the company, alleging compensation for some ITT staff violated the [[Higher Education Act of 1965]] by incentivizing recruiters based on the number of students they enrolled with the school. The case alleged a culture of corruption at ITT,<ref>{{cite news |title=A Whistle Was Blown on ITT; 17 Years Later, It Collapsed |work=The New York Times |date=21 October 2016 |url=https://www.nytimes.com/2016/10/23/business/a-whistle-was-blown-on-itt-17-years-later-it-collapsed.html |access-date=25 July 2022|last1=Morgenson |first1=Gretchen }}</ref> and was litigated for about 17 years until ITT prevailed when the US Supreme Court refused to hear an appeal of earlier rulings that the case was dismissed for [[failure to state a claim]].

In 2004, federal agents served [[search warrant]]s at the company's headquarters and ten of its campuses in Indiana, Texas, Virginia, Florida, Louisiana, Nevada, California, and Oregon, seeking various student records. No civil or criminal charges were made at this time.<ref name="cnnraids">{{cite news|url=http://www.cnn.com/2004/TECH/biztech/02/26/itttech.subpoenas.ap/index.html |title=Feds serve warrants at ITT Tech campuses |date=February 26, 2004 |url-status=dead |archive-url=https://web.archive.org/web/20060206065801/http://www.cnn.com/2004/TECH/biztech/02/26/itttech.subpoenas.ap/index.html |archive-date=February 6, 2006 }}</ref> The investigation negatively affected the company's stock and triggered several class-action lawsuits by investors.<ref name="fedcert">{{cite web|url=http://certcities.com/editorial/news/story.asp?EditorialsID=571|title=MCPmag.com – Microsoft Certified Professional Magazine Online|work=certcities.com}}</ref><ref name="ceoexpects">{{cite web|url=http://www.crn.com/it-channel/18831505 |title=ITT's CEO Expects Lengthy Federal Investigation, Stock Slips |publisher=Channel Web Network |date=February 26, 2004 |author=Mark Jewell |url-status=dead |archive-url=https://web.archive.org/web/20090322194912/http://www.crn.com/it-channel/18831505 |archive-date=March 22, 2009 }}</ref> The same year, the Office of the Attorney General for the State of California (CAG) investigated ITT Technical Institutes in California. The CAG's investigation was in response to ''[[qui tam]]'' actions filed against the company under either state, federal, or both False Claims Acts. (''Qui tam'' actions are [[writ]]s through which private individuals who assist a prosecution can receive part or all of the damages or financial penalties recovered by the government as a result of the prosecution). The probe alleged that ITT Tech falsified records relating to student attendance, grades, and academic progress. It also said that ITT Tech falsified student grade point average calculations used to qualify students for financial aid under the State's Cal Grant Program and retaliated against employees who may have complained about those alleged acts.<ref>{{cite web|url=https://www.sec.gov/Archives/edgar/data/922475/000119312506026673/d10ka.htm|title=Amendment No. 1 to the Form 10-K|website=www.sec.gov}}</ref> Omer Waddles, ESI's CEO, and a former counsel for Edward Kennedy, also resigned.<ref>{{cite web|url=http://www.ittesi.com/index.php?s=43&item=25|title=News Releases|website=ITT Educational Services, Inc. - Investor Relations|access-date=2016-10-06|archive-date=2016-10-09|archive-url=https://web.archive.org/web/20161009162254/http://www.ittesi.com/index.php?s=43&item=25|url-status=dead}}</ref><ref>{{cite web| url = http://www.prnewswire.com/news-releases/itt-educational-services-inc-announces-that-omer-waddles-joins-management-team-as-executive-vice-president-75074702.html| url-status = dead| archive-url = https://web.archive.org/web/20161009153056/http://www.prnewswire.com/news-releases/itt-educational-services-inc-announces-that-omer-waddles-joins-management-team-as-executive-vice-president-75074702.html| archive-date = 2016-10-09| title = ITT Educational Services, Inc. Announces That Omer Waddles Joins Management Team as Executive Vice}}</ref>

In October 2005, ITT agreed to pay $730,000 to settle a lawsuit with California. The involved employees alleged that it inflated students' grade point averages to qualify them for more financial aid from the State of California.<ref name="CA-IHE">{{cite web|url=http://insidehighered.com/news/2005/10/18/itt|title=ITT, Calif. Settle False Claims Lawsuit|work=insidehighered.com|access-date=2007-07-24|archive-date=2007-09-30|archive-url=https://web.archive.org/web/20070930030730/http://insidehighered.com/news/2005/10/18/itt|url-status=dead}}</ref>

A February 2011 [[investigative journalism|investigative report]] by [[WTMJ-TV]] in [[Milwaukee]] found evidence of widespread [[grade inflation]] at the school's Milwaukee area location in [[Greenfield, Wisconsin|Greenfield]]. In one instance a student received a score of 100% on a computer forensics assignment by emailing the professor a noodle recipe. The station's reporters believed tactics such as these increased federal student aid funding.<ref name="wgba">{{cite news|archive-url=https://web.archive.org/web/20110218070029/http://www.todaystmj4.com/features/iteam/116207719.html|archive-date=February 18, 2011|url=http://www.todaystmj4.com/features/iteam/116207719.html|title=I-Team: Easy A's|last=Diamant|first=Aaron|work=WGBA-TV|access-date=November 2, 2014}}</ref>

In 2013, a complaint was filed against ESI and two ESI executive officers in [[U.S. District Court for the Southern District of New York]] regarding securities. The Massachusetts Laborers' Annuity Fund filed a similar complaint and the cases were consolidated. The Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund were the lead plaintiffs.<ref name="ITT 2014 10Q" /> Students continue to allege that private loans with [[JP Morgan Chase]] and other banks are [[predatory loan]]s.<ref name="consumerfinance.gov"/> In 2013 ''[[USA Today]]'' listed more than 50 ITT campuses as "red flag" schools because their [[Student loans in the United States#Repayment and default|student loan default]] rates were higher than their graduation rates.<ref>{{cite web|url=https://www.usatoday.com/story/news/nation/2013/07/02/college-default-rates-higher-than-grad-rates/2480295/|title=College default rates higher than grad rates|author=Mary Beth Marklein, Jodi Upton and Sandhya Kambhampati, USA TODAY|date=July 2, 2013|work=USA Today}}</ref>

On February 26, 2014, the [[Consumer Financial Protection Bureau]] (CFPB) sued ITT. The CFPB alleged ITT used high-pressure tactics to coerce students into obtaining high-interest private loans that were likely to end in default.<ref name="consumerfinance.gov">{{cite web|url=http://www.consumerfinance.gov/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/|title=CFPB Sues For-Profit College Chain ITT For Predatory Lending|work=Consumer Financial Protection Bureau|date=26 February 2014 }}</ref><ref>{{cite web|last=Lopez |first=Ricardo |url=https://www.latimes.com/business/money/la-fi-mo-cfpb-itt-tech-enforcement-action-20140226,0,6644352.story#axzz2uXZbHPTZ |title=Regulator accuses ITT for-profit college chain of predatory lending |work=Los Angeles Times |date=26 February 2014 |access-date=February 27, 2014}}</ref> ESI is also being investigated by at least a dozen state attorneys general for allegations of fraud and deceptive marketing.<ref name="ITT 2014 10Q">{{cite web| url=https://www.sec.gov/Archives/edgar/data/922475/000119312514418646/d819922d10q.htm |publisher=[[U.S. Securities and Exchange Commission]]| title=Form 10-Q Quarterly Report - For the quarterly period ended June 30, 2014 |date=November 19, 2014}}</ref><ref>{{cite web|url=https://www.huffingtonpost.com/davidhalperin/state-attorneys-general-o_b_4677145.html|title=State Attorneys General Open Major Investigations of Big For-Profit Colleges|work=The Huffington Post|date=27 January 2014}}</ref><ref>{{cite web|url=https://www.wsj.com/articles/SB10001424052702303819704579318872286744010|title=CFPB, State Attorneys General Expand For-Profit College Probe – WSJ|author1=Stephanie Armour |author2=Alan Zibel |date=January 13, 2014|work=The Wall Street Journal}}</ref> According to a July 2014 Senate Health, Education, Labor, and Pensions (HELP) committee report, 57% of ITT programs would fail the Department of Education's proposed Gainful Employment rule.<ref>{{cite web| url=http://static1.squarespace.com/static/556718b2e4b02e470eb1b186/t/56007ca2e4b0a6f05d145686/1442872482088/ITT+Profile-TC+Edits.pdf| publisher=SquareSpace| title=ITT Summary: 2012 U.S. Senate Committee Finding + 2015 Update}}</ref>

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.<ref>Nick DeSantis and Goldie Blumenstyk, "U.S. Tightens Restrictions on ITT's Access to Federal Student Aid", ''Chronicle of Higher Education'', October 20, 2015 [http://chronicle.com/article/US-Tightens-Restrictions-on/233830?cid=at&elq=ef440be0bed74f8ab60ff65768ae5e85&elqCampaignId=1646&elqaid=6628&elqat=1&elqTrackId=626fed9ad870418bad432b4394e3c40e] Accessed Oct 21, 2015</ref>

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.<ref>{{cite news |url=https://www.huffingtonpost.com/davidhalperin/blockbuster-lawsuit-claim_b_9040584.html |work=Huffington Post |title=Blockbuster Lawsuit Claims Abusive Practices Persist at ITT Tech |date=January 21, 2016 |author=David Halperin}}</ref> 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.<ref>{{cite web |url=http://www.military.com/education/2015/05/18/california-suspends-itt-tech-gi-bill-eligibility.html |publisher=Military.com |title=California Suspends ITT Tech GI Bill Eligibility |date=May 18, 2015}}</ref> In 2015, the [[Securities and Exchange Commission]] also announced fraud charges against ITT Educational Services Inc., its chief executive officer Kevin Modany, and its chief financial officer Daniel Fitzpatrick.<ref>{{cite web |url=https://www.sec.gov/news/pressrelease/2015-86.html |publisher=U.S. Securities And Exchange Commission |title=SEC Announces Fraud Charges Against ITT Educational Services |date=May 12, 2015}}</ref>

In 2016, Massachusetts Attorney General [[Maura Healey]] sued ITT Educational Services for allegedly "misleading and harassing students."<ref>{{cite news |url=https://www.huffingtonpost.com/davidhalperin/massachusetts-sues-itt-te_b_9610440.html |work=Huffington Post |title=Massachusetts Sues ITT Tech for Misleading and Harassing Students |author=David Halperon |date=April 4, 2016}}</ref><ref>{{cite news |url=https://www.csmonitor.com/USA/Education/2016/0405/Massachusetts-sues-ITT-Tech-alleging-predatory-practices |newspaper=The Christian Science Monitor |title=Massachusetts sues ITT Tech, alleging predatory practices |author=Bamzi Banchiri |date=April 5, 2016}}</ref> Breckinridge nurses also sued ITT Education for fraud.<ref>{{cite web |url=http://www.courthousenews.com/2016/04/08/students-say-itt-recruiters-misled-them.htm |publisher=Courthouse News Service |title=Students Say ITT Recruiters Misled Them |author=Kevin Lessmiller |date=April 8, 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160417034214/http://www.courthousenews.com/2016/04/08/students-say-itt-recruiters-misled-them.htm |archive-date=April 17, 2016 }}</ref> Between 2004 and 2014, several states issued subpoenas or [[Civil Investigative Demand]]s 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.<ref>{{cite web |url=https://www.nclc.org/images/pdf/pr-reports/for-profit-gov-investigations.pdf |publisher=National Consumer Law Center |title=Government Investigations and Lawsuits Involving For-Profit Schools (2004 – May 2014) |access-date=2016-04-02 |archive-date=2017-02-09 |archive-url=https://web.archive.org/web/20170209131112/https://www.nclc.org/images/pdf/pr-reports/for-profit-gov-investigations.pdf |url-status=dead }}</ref>

On August 25, 2016, the U.S. Department of Education banned ITT Tech from enrolling students who receive federal aid. The department also doubled the [[surety]] funds that ITT Tech was required to have, and to produce those funds within 30 days. ITT stock soon dropped by 35%  which triggered a halt in trading and raised concerns about whether ITT Educational would be able to survive this latest decision.<ref>{{cite web |url=http://www.ibj.com/articles/60122-feds-ban-itt-educational-from-enrolling-students-on-federal-aid |work=Indianapolis Business Journal |title=Feds ban ITT Educational from enrolling students on federal aid (2016 – Aug 2016) |access-date=2016-08-25 |archive-date=2016-08-26 |archive-url=https://web.archive.org/web/20160826135144/http://www.ibj.com/articles/60122-feds-ban-itt-educational-from-enrolling-students-on-federal-aid |url-status=dead }}</ref>

On September 6, 2016, ITT Tech ceased operations and closed all of its locations, issuing a statement that attributed the closing to the Department of Education's actions.<ref name="WJZ 09062016" />

In 2022, ITT Technical Institute was one of 153 institutions included in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement was approved in August 2022, stating that the schools on the list were included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven."<ref>{{cite web|url=https://static1.squarespace.com/static/62d6e418e8d8517940207135/t/62e2e45a915c367b4086d7b0/1659036762506/288+Govt+Consol+Opposition+to+Motions+to+Intervene+w+Decl+of+Ben+Miller.pdf|title=Government's Consolidated Opposition to Motions to Intervene|access-date=2023-04-15}}</ref><ref>{{cite news |last1= Turner|first1= Cory|last2= Carrillo|first2= Sequoia|last3= Salhotra|first3= Pooja|date= 2022-08-05|title= 200k student borrowers are closer to getting their loans erased after judge's ruling|url= https://www.npr.org/2022/07/21/1112554478/student-loan-forgiveness-borrower-defense|publisher= National Public Radio|access-date= 2023-04-15}}</ref> In April 2023, the Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud.<ref>{{cite news |last= Hurley|first= Lawrence|date= 2023-04-13|title= Supreme Court allows $6 billion student loan debt settlement|url= https://www.cnbc.com/2023/04/13/supreme-court-allows-6-billion-student-loan-debt-settlement.html|publisher= NBC News|access-date= 2023-04-15}}</ref>

== Notable alumni ==
* [[Curt Cobb]], former member of the [[Tennessee House of Representatives]]
* [[Jon Hensley (radio personality)|Jon Hensley]], radio personality and talent manager
* [[Yvette Herrell]], [[United States Representative]] for [[New Mexico|New Mexico's]] [[New Mexico's 2nd congressional district|2nd congressional district]]
* [[David Joyner (actor)|David Joyner]], actor known for ''[[Barney & Friends]]''<ref>{{Cite web|title=The Guy Who Played Barney the Dinosaur Now Runs a Tantric Sex Business|url=https://www.vice.com/en/article/the-guy-who-played-barney-the-dinosaur-now-runs-a-tantric-sex-business/|access-date=2020-11-06|website=Vice.com|date=23 January 2018 |language=en}}</ref>
* [[Omar Navarro]], perennial candidate and convicted felon
* [[Ricardo Raschini]], Brazilian bobsledder who competed in the 2002 and [[2006 Winter Olympics]]<ref>{{Cite web|title=Brazilian Bobsledders Try Out Ticketless Travel {{!}} SWX Right Now - Sports for Spokane, CdA, Tri-Cities, WA|url=https://www.swxrightnow.com/stories/1998/jan/31/brazilian-bobsledders-try-out-ticketless-travel/|access-date=2020-11-06|website=www.swxrightnow.com}}{{Dead link|date=July 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
* [[DJ Tab]], hip hop DJ, record producer, and entrepreneur<ref>{{Cite web|title=DJ Tab – Passion is Pursuit Conference|url=https://passionispursuit.com/speaker/dj-tab/|access-date=2020-11-06|language=en-US|archive-date=2020-09-29|archive-url=https://web.archive.org/web/20200929041839/https://passionispursuit.com/speaker/dj-tab/|url-status=dead}}</ref>

==See also==
*[[DeVry University]]

==References==
{{Reflist}}

==External links==
* {{Official website}}
* [http://www.ittchapter7.com/ ITT Educational Services, Inc., et al. bankruptcy website]

{{ITT Corporation}}
{{Colleges and universities in metropolitan Indianapolis}}
{{Colleges and Universities in Metropolitan Evansville}}
{{Colleges and universities in Los Angeles County}}
{{Authority control}}

{{DEFAULTSORT:Itt Technical Institute}}
[[Category:1946 establishments in Indiana]]
[[Category:2016 disestablishments in Indiana]]
[[Category:Carmel, Indiana]]
[[Category:Defunct companies based in Indiana]]
[[Category:Education companies established in 1946]]
[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Companies that filed for Chapter 7 bankruptcy in 2016]]
[[Category:Companies that have filed for Chapter 7 bankruptcy]]
[[Category:Universities and colleges established in 1946]]
[[Category:Former for-profit universities and colleges in the United States]]
[[Category:Educational institutions disestablished in 2016]]
[[Category:ITT Inc.]]
[[Category:Vocational education in the United States]]
[[Category:American companies disestablished in 2016]]
[[Category:Defunct education companies of the United States]]
[[Category:Education fraud in the United States]]