ITT Technical Institutes Shuts Down, Leaving a Hefty Bill

originally posted by: FamCore
a reply to: Willtell

Can you please elaborate on what you mean by this?

The next economic swindles are likely to revolve around educational school loans...this may just be the beginning.

Really piqued my interest

The big bubble no one is paying attention to is student debt at $1 trillion and, for many, those were federally guaranteed loans.

Interestingly, failure to pay those loans puts you in jail and they are the only form of debt that is not escapable through bankruptcy.

It is obvious that government bureaucracy has something against for profit schools. I find it quite odd that the focus is on ITT and other schools while they say nothing about the poor graduation rates of traditional universities. It is also quite odd considering that the government didn't have an issue financing students to attend this school. One wonders if the Feds will step up and forgive the student loans of these students. I doubt it.

The university system is going to collapse under the debt created by our government. They've created a situation where people are willing to mortgage their futures for a shot at higher education. The only way to fix this mess is for government to get out of the student loan business, period.

A private market would properly underwrite these loans so that poor performing schools will be harder to finance and thus indirectly protecting consumers from themselves.

a reply to: Edumakated

Yes and it's not a conspiracy, it's official policy.

All that I know is that over the years I have interviewed dozens of ITT graduates and was not able to hire any of them. I was interviewing graduates of their Drafting and Design school. I found that they were very proficient in the use of the CAD software, but, were lacking in the knowledge of what they were designing. One of my questions was "Where would you find information on a 6-32 thread?" Not one of them could give me an answer. If they had a degree in CAD, I could understand this, but, their degree was in Machine Design, they should know this. By the way the number 6 is a wire Gage (.138") and the -32 is 32 threads per inch. I would have accepted any fastener website, Machinery's Handbook, a drafting textbook and several other answers.

originally posted by: EdumakatedOne wonders if the Feds will step up and forgive the student loans of these students. I doubt it.

Current ITT students, and those who withdrew in the past 120 days, can seek to have their loans discharged under federal rules and restart their college careers from scratch elsewhere. If every eligible student sought such relief, the tally would be about $500 million.

Alternatively, they can transfer to other schools, but wouldn’t be able to discharge all their loans if their ITT credits are accepted at similar programs elsewhere.

WSJ

The university system is going to collapse under the debt created by our government. They've created a situation where people are willing to mortgage their futures for a shot at higher education. The only way to fix this mess is for government to get out of the student loan business, period.

That's just one step in fixing the problem. The main issue, IMO, is that we currently live in a society that claims that success in life can only be acquired (in general) through a college degree. If we would get back to a place where manufacturers didn't leave overseas (a product of corporate taxation rates, amongst other things) and then we gave technical schools and apprenticeships the praise that they deserve, we could get away from the idea that (a) everyone is college material, and (b) everyone needs to go there (and by doing so, generally going into debt before they even have a career).

originally posted by: SlapMonkey

originally posted by: EdumakatedOne wonders if the Feds will step up and forgive the student loans of these students. I doubt it.

Current ITT students, and those who withdrew in the past 120 days, can seek to have their loans discharged under federal rules and restart their college careers from scratch elsewhere. If every eligible student sought such relief, the tally would be about $500 million.

Alternatively, they can transfer to other schools, but wouldn’t be able to discharge all their loans if their ITT credits are accepted at similar programs elsewhere.

WSJ

The university system is going to collapse under the debt created by our government. They've created a situation where people are willing to mortgage their futures for a shot at higher education. The only way to fix this mess is for government to get out of the student loan business, period.

That's just one step in fixing the problem. The main issue, IMO, is that we currently live in a society that claims that success in life can only be acquired (in general) through a college degree. If we would get back to a place where manufacturers didn't leave overseas (a product of corporate taxation rates, amongst other things) and then we gave technical schools and apprenticeships the praise that they deserve, we could get away from the idea that (a) everyone is college material, and (b) everyone needs to go there (and by doing so, generally going into debt before they even have a career).

So they screw over graduates who are still paying student loans on a worthless degree.

I agree that college is not for everyone. Even though I am socking away money for my child, if the price inflation continues, I think I am going to offer to just help him start a business instead of paying for college.

originally posted by: Edumakated
So they screw over graduates who are still paying student loans on a worthless degree.

That's one way to see it, although I prefer the view that they're screwing over the taxpayer by discharging these loans.

People need to do their homework when they choose a school...the writing has been on the wall for many years that ITT Tech was not the place to go.

I purchased a home on my VA loan that has turned out to be a relative money pit (luckily I can do most repairs myself), but just because I have buyer's remorse, does that mean that the federal government should discharge my loan because my house basically sucks?

I know it's not exactly the same, but you get my point, I hope.

a reply to: mysterioustranger

I went when they were TTI back in 89...same building too,the only jobs available were temping so I wen't back into the Army.

originally posted by: SlapMonkey
Happy Tuesday everyone-

It looks like one of the largest closures of a college in the U.S. has just happened basically overnight.

It wasn't just "overnight". Back when I was researching colleges to go to around here, ITT Tech was one of them. And after they disclosed their cost per credit hour, I had to keep from laughing in their faces. Their prices were so exorbitant. Them closing down was just an inevitable conclusion.

That they got away with it for so long is really something.

This is a conspiracy forum right? So you have to see the bigger picture here. The Obama administration is using the power of student loans to shut down all private education. The government wants to control the narrative. Only government approved education programs will be allowed.

So if for example you teach an alternative to evolution or maybe history that doesn't fit the current narrative or say you support supply side economics, or you stress our christian heritage, maybe the government won't give you the proper accreditation.

a reply to: cavtrooper7

I got a job I kept for 20 years and retired from...the University of Michigan Medical Center in Ann Arbor.

And I DIDNT get it by finishing studies at ITT Tech...in fact...I dropped out when I found most of the medical classes either werent transferable...or didnt provide enough ed. for passing any state exams.

In 1986 I passed them anyway...and of course lost all "credits" from there...and never could get a "transcript" of my completed classes.

But the gov. garnished my wages until I paid off my student loan from there. I was fighting for my transcripts and transferable credits....didnt happen.

Diploma mill with unreal job "possibilities". I learned the hard way.

originally posted by: _BoneZ_
It wasn't just "overnight". Back when I was researching colleges to go to around here, ITT Tech was one of them. And after they disclosed their cost per credit hour, I had to keep from laughing in their faces. Their prices were so exorbitant. Them closing down was just an inevitable conclusion.

That they got away with it for so long is really something.

Agreed, but I was talking about the actual closure itself, not the demise of ITT...that's been underway for quite a few years, now. Hell, if I recall correctly, they projected a 30% (or higher) drop in enrollment from one year ago. That was just one recent sign--there were many along the way.

At least you were smart enough to walk away

originally posted by: SevenThunders
This is a conspiracy forum right? So you have to see the bigger picture here. The Obama administration is using the power of student loans to shut down all private education. The government wants to control the narrative. Only government approved education programs will be allowed.

So if for example you teach an alternative to evolution or maybe history that doesn't fit the current narrative or say you support supply side economics, or you stress our christian heritage, maybe the government won't give you the proper accreditation.

Yep...I agree, 100%.

BUT--and it's a pretty important 'but'--with as poor as ITT Tech has been doing, the gov't was right to demand more surety from the business since there were already signs of them starting to fail. Whether or not the start of said failing was due to Obama's policies since around 2010 is irrelevant to the reality that it was intelligent to demand more of a safety net.

That said, we need to get out of the business of propping up private business, whether it's education, banking, renewable energy, or otherwise. It literally NEVER ends well, save for may a few outlying examples.

I've got a couple of friends between me & the husband back in FL who are not fans of ITT after realizing they were unable to transfer their credits elsewhere. And then there's the cost of it. They felt that in hindsight, they got completely screwed over on the value & grossly overpaid. Even my older brother used to warn people against them, "If you can't transfer your credits, it's a money-suck s# school." He never attended there, but his point was absolutely valid.

Personal anecdotes aside, the obvious bottom line is if you're a for-profit school, don't expect to keep eating out of the government's hand forever. The gravy train will eventually cease.

originally posted by: Bobaganoosh
Good riddance.

I spent the better part of a decade paying off that mistake.

A close friend of mine got slammed by them. They were just a Government loan factory. Little or nothing to show for the students efforts and left with huge debt and worthless certificates.

a reply to: SLAYER69

Little or nothing to show for the students efforts and left with huge debt and worthless certificates.

So, kind of like a 4 year U without all the parties?

originally posted by: SlapMonkey

Yep...I agree, 100%.

BUT--and it's a pretty important 'but'--with as poor as ITT Tech has been doing, the gov't was right to demand more surety from the business since there were already signs of them starting to fail. Whether or not the start of said failing was due to Obama's policies since around 2010 is irrelevant to the reality that it was intelligent to demand more of a safety net.

That said, we need to get out of the business of propping up private business, whether it's education, banking, renewable energy, or otherwise. It literally NEVER ends well, save for may a few outlying examples.

Not sure the government has a right to demand how a private institution handles their finances if they are on the up and up. But I do agree that ITT is not a great example of how private education should be run. They do border on scam in some cases.

I am however greatly concerned about government overreach in shutting down an entire industry, and I'm especially concerned about their control of an industry that shapes the minds and intellects of future Americans. To me it's right out of the Soviet Union playbook.

a reply to: SevenThunders

After researching a bit on a previously unknown subject to me, it looks like ITT was finally shut down for offering false hopes in a bad economy.

I can honestly say after 20-plus years of hiring sysadmins and other techie positions, I couldn't care less if they had an institute certificate or a degree from a 4-year college. It all comes down to character, experience, and subject-matter knowledge.

originally posted by: Willtell

originally posted by: FamCore
a reply to: SlapMonkey

Guess I won't be seeing any more of those commercials then.

What's next, Devray University, Phoenix, or Walden University? JK, but I could go without their commercials as well.

Will this have implications for people who have degrees from ITT? Does it look bad on their resume now?

That’s DeVry University and I doubt they go down any time soon.

DeVry is more of a legitimate college than ITT. It’s a great institution.


And they don’t promise you much but a degree


When I was young and went to change my career from the auto industry it was ITT or DeVry. DeVry at the time to me was much better like a real college.


But to the point. The next economic swindles are likely to revolve around educational school loans...this may just be the beginning.

I can almost guarantee that this is the beginning of the end...of the market as we know it.

The student loan bubble, on top of the auto loan bubble and the fact that there are $500,000 homes for sale in LA's war zones, along with the $1,000,000+ homes in San Francisco that are less than 1000sq/ft. That's just the half of it. Then take a look at Uber, yahoo, FB, Snapchat...all that crap is supposed to be worth billions of dollars??? What a joke!

Buckle up...it's going to be a bumpy ride folks!

My son graduated from there and they placed him in a great job.