ITT Tech
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
ITT Technical Institutes (ITT Tech) was one of the largest for-profit college chains in the United States, operated by ITT Educational Services of Carmel, Indiana. Tracing its roots to 1969, it ran more than 130 campuses in 38 states offering technical education — information technology, electronics, business, drafting and design — to roughly 40,000 students, employing about 8,000 staff. About 80% of its revenue came from federal student aid under Title IV.
02 / ITT Tech FAILURE REASONS
Failure factors supported by the current evidence
Federal and state investigations culminated in the loss of access to federally guaranteed student loans. Without that funding channel, ITT Tech closed its campuses and filed for bankruptcy.
The U.S. Department of Education barred new students from using federally guaranteed loans at ITT Tech.
The loss of federal student-aid access removed a central funding channel for the schools.
03 / EVENT HISTORY
Events in the structured record
- Bankruptcy and campus closure
ITT Tech closed all campuses in September 2016 and filed for bankruptcy after the federal student-loan restriction.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
In August 2016 the US Department of Education banned ITT from enrolling new students with federal financial aid and raised its surety requirement from $94 million to over $247 million, after finding it out of compliance with accreditation and financial standards.
- 02
On September 6, 2016 ITT Educational Services ceased operations at all 130+ ITT Tech campuses, ending classes for ~40,000 students and laying off most of its 8,000 employees.
- 03
The parent company filed for bankruptcy shortly after; the closure was among the largest college shutdowns in US history.