For-profit college operator ITT Educational Services is shutting down all of its campuses, including four locations in metro Atlanta.
The company announced the ITT Technical Institute closings on Tuesday, less than a month after federal education officials barred the company from admitting students who receive federal financial aid.
“The actions of and sanctions from the U.S. Department of Education have forced us to cease operations of the ITT Technical Institutes, and we will not be offering our September quarter,” read a statement from the company.
The shutdown will have an immediate impact on thousands of staff and students, including at its locations in Kennesaw, Duluth, Atlanta and Douglasville. A company spokeswoman declined to provide information on the number of students enrolled at its four metro Atlanta locations. ITT operated 130 campuses in 38 states, serving 40,000 students according to the company’s website.
The Carmel, Ind.-based company is eliminating the majority of its 8,000 employees, and the remaining staffers will be focused on helping the “tens of thousands of unexpectedly displaced students” with their records and future educational options.
The for-profit giant had faced a number of state and federal lawsuits and investigations into its practices, including exaggerated job-placement rates and questions about its student recruitment practices.
ITT is the latest causalty in a crackdown by the Obama administration of for-profit college operators. In June, Education Management Corporation, the for-profit operator of Brown Mackie College, announced plans to close most of its 26 campuses, including its Atlanta location over the next few years. Last year, Corinthian Colleges — which operated Everest, Heald and WyoTech campuses — also ceased operations following state and federal legal challenges.
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