Technical school banned from enrolling students with federal financial aid

The U.S. Department of Education announced Thursday it no longer will allow ITT Educational Services Inc. to enroll new students using federal financial aid.

The action was taken to protect prospective students and taxpayers, according to a department news release.

ITT is a for-profit technical institute with more than 130 campuses in 38 states, including Oklahoma. ITT Technical Institute branches are in Oklahoma City’s 50 Penn Place and at 4500 S 129th E Ave. in Tulsa.

The move follows a determination by the school’s accreditor, the Accrediting Council for Independent Colleges and Schools, that ITT is not in compliance with accreditation criteria.

Increased oversight

The Education Department increased financial oversight for ITT in 2014 and expanded oversight measures in June due to “significant concerns about ITT’s administrative capacity, organizational integrity, financial viability and ability to serve students.”

“Looking at all of the risk factors, it’s clear that we need increased financial protection and that it simply would not be responsible or in the best interest of students to allow ITT to continue enrolling new students who rely on federal student aid funds,” U.S. Secretary of Education John B. King Jr. said in the news release.

ITT’s decisions have put its students and millions of dollars in taxpayer-funded federal student aid at risk, King said.

Investigations into ITT’s operations are ongoing.

The department also announced additional steps it is taking regarding federal student aid for current ITT students. ITT students with federal loans can continue courses at ITT with their federal student aid, according to the news release.

Calls to ITT’s Oklahoma City director and to the national headquarters were not returned Thursday afternoon.