Through the move, more than 130 campuses in 38 states will no longer be in operation. ITT Educational Services officials said they will eliminate the “overwhelming majority” of its more than 8,000 ITT Tech employees.
The for-profit college company blamed the U.S. Department of Education’s recent actions for the closure. In August, the Department demanded ITT Educational Services hand over $152.9 million in collateral to protect taxpayers from a sudden collapse. The company only had $78 million in cash on hand, according to Bloomberg.
“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 a statement.
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