Now That ITT Tech Is Closed, What Options Do Students Have?

Nearly 40,000 students have been left in educational limbo following the sudden closure of all 130 ITT Tech campuses. What options are available to these stranded students who have invested their time and money in a shuttered school?

In response to the ITT closures, the Department of Education released a new rundown of options for now-former ITT students, along with information on how the government plans to support students as they explore their future education.

For now, the Dept. says students with federal aid can can follow one of two paths:

• Apply For A Discharge: Students who are currently enrolled at ITT Tech or who have withdrawn from ITT within the last 120 days may be eligible to have their federal student loans from their ITT program discharged through the closed school loan program.

To get started with the closed school process, students should call their loan servicer or visit studentaid.gov/ITT (which will be updated today).

• Transfer Schools: Students may choose to continue their studies at another school. This may make sense for students who are closer to completing their programs. However, the Dept. notes that it’s important for students to know that if they are able to transfer their credits into a similar program of study, some or all of their loans will no longer be eligible for discharge.

“Both of these options have pros and cons, depending on your unique circumstances, so it is important that you consider your specific situation carefully,” Dept. of Education under secretary Ted Mitchell tells students.

In addition to outlining potential options for current and recently former students, the Dept. of Education also said it would roll out a series of services aimed at assisting affected consumers.

Mitchell says the Dept. will contact all currently enrolled ITT students on Tuesday to alert them of the closure and inform them of their options. The calls will include on-hand student aid professionals who can answer specific questions.

Later this week, the Dept. will host a series of webinars for students to walk through these options. The webinars will then be posted on the studentaid.gov/ITT website and will continue to serve as a resource for students as they make these important decisions.

The Dept. will partner with states in which ITT campuses are located to host in-person transfer fairs.

Additionally, the Dept. says it is currently working with ITT to ensure that student transcripts are available as they begin exploring their future education.

The DOE urges the student to consider these factors when looking to transfer:
• Whether your credits transfer will be up to the new school. It’s likely to vary based on the type of program and school you’re considering.

• If you transfer your credits, you may not be eligible to have some or all of your federal loans discharged if ITT ultimately closes.

• Before you transfer, ask yourself: Is the type of program I’ve started still the right one for me? Will finishing it open up the career opportunities I want? You may want to check out our College Scorecard as you think about the answers to those questions.

“In the coming days, weeks, and months, we will be here to help those students understand their options, sort out their next steps, and connect them with others who can help,” Mitchell said.