A week after ITT Educational Services closed all 130 of its ITT Technical Institute campuses, the for-profit college education announced it would cease what’s left of its operations Friday, including closing its other beleaguered for-profit education entity, Daniel Webster College in New Hampshire.
ITT Educational Services revealed the pending shutdown in a regulatory filing on Wednesday, noting that sanctions handed down by the Department of Education over the last month precipitated the decision to close up shop.
According to the filing, the end of business comes after senior lenders notified ITT that it was seizing control of the company’s bank accounts.
ITT received notification last week that it was in default on its financing agreement and would immediately be required to repay the $34.5 million loan.
“The cumulative effects of the events over the last several weeks have led the Company to plan to cease all operations as of September 16, 2016,” the company said.
As for the roughly 700 students currently enrolled at DWC, ITT says it has reached a “teach-out” agreement with non-profit Southern New Hampshire University.
The agreement was reached after ITT and the Department of Education reached out to institutions to accommodate students, and SNHU agreed to take on all DWC programs and students.
As part of the agreement, SNHU says it will provide the faculty, facilities and student support necessary to deliver all DWC academic programs through the 2016-2017 academic year.
Current DWC faculty will continue to teach their courses, and SNHU plans officially hire many of these instructors.
The now former DWC students will have access to their 2016-2017 federal financial aid and all institutional aid, and SNHU has agreed to honor the current rate of tuition and fees for all DWC students for the remaining academic year.
Following the end of the 2016-2017 school year, DWC students will be allowed to continue their education with SNHU if they meet minimum admission requirements for all subsequent coursework.
Two weeks ago, prior to the closure of ITT Tech, ITT Educational Services announced that DWC, which it purchased in 2009, was in danger of losing its accreditation.
by Ashlee Kieler via Consumerist
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