AUSTIN (KXAN/WKBN) – The fallout from the ITT Technical Institute closing all of its campuses following federal sanctions imposed against the company will have an impact on the Austin campus located on Highway 290E in east Austin.
On Tuesday, the college released a statement stating more than 8,000 employees will be affected as well as hundreds of thousands of students. ITT says the U.S. Department of Education’s requirement that the school increase their surety requirement to 40 percent of their Title IV federal funding and be under “Heightened Cash Monitoring Level 2” forced them to close.
The statement goes on to say that the for-profit school has “always carefully managed expenses to align with our enrollments.”
We had no intention prior to the receipt of the most recent sanctions of closing down despite the challenging regulatory environment that now threatens all proprietary higher education. We have also always worked tirelessly to ensure compliance with all applicable laws and regulations, and to uphold our ethic of continuous improvement.
Last month, the Department of Education banned the college chain ITT Educational Services from enrolling new students who use federal financial aid. Among the measures, ITT was ordered to pay $152 million to the department within 30 days to cover student refunds and other liabilities in case the company closes. The chain, based in Indiana, is still paying another $44 million demanded by the department in June for the same reason.
The company says they were not provided with a hearing or an appeal.
Even though the doors are shuttered, the company says they will continue working with the students who were enrolled to make sure they get their records.
When KXAN News called the Austin campus we were directed to an automated message that indicated the school hours but had no information about the school being closed. A sign posted on the school’s entrance indicated the school was closed for the Labor Day holiday and that there was a “Student Break” from Sept. 5-11, but no indication that the campus was officially closed for good.