ITT Technical Institute announced Monday that it has stopped enrolling all new students, a blow to the for-profit school.
The change—announced Monday on the school’s website—follows the U.S. Department of Education’s decision last week to ban ITT from enrolling new students who receive federal aid, an effort aimed at protecting students and taxpayers, the department said. The action comes amid a larger crackdown on for-profit schools by the Obama administration. Most ITT students receive federal aid, the Indianapolis Star reported.
“In case the school’s actions cause it to close, we’re increasing the amount of cash reserves it must send us and we’re ending its installment payment plan for the amount previously required,” the Department of Education wrote in a blog post. “Finally, we’re slowing down when ITT receives student aid from the government to ensure that ITT is handling its finances properly.”
ITT has more than 130 campuses across the country, where more than 40,000 students are enrolled, according to its website.