ITT Tech shuts down all campuses after federal aid sanctions

ITT Tech shuts down all campuses after federal aid sanctions

CARMEL, Ind. — Following a federal investigation, ITT Educational Services announced Tuesday it will shut down all of its ITT Technical Institute campuses, including in Charlotte.

The for-profit educational company said in a news release on its website that it will cease operations after sanctions from the U.S. Department of Education.

The announcement comes days after the U.S. Department of Education banned it from enrolling new students who use federal financial aid.

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The schools -- more than 130 campuses across 38 states -- will not offer its planned September quarter.

The company, based in Carmel, Indiana, said its move will have an impact on hundreds of thousands of students and alumni as well as more than 8,000 employees.

The company said it has eliminated the positions of the "overwhelming majority" of those employees.

"We believe the government's action was inappropriate and unconstitutional, however, with the ITT Technical Institutes ceasing operations, it will now likely rest on other parties to understand these reprehensible actions and to take action to attempt to prevent this from happening again," the company said in the release.

ITT Educational Services said it was forced to take the action after the U.S. Department of Education issued sanctions Aug. 25, including a ban on enrolling new students who rely on federal financial aid.

Read more on ITT's decision to close here.

The Associated Press contributed to this article.

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