ITT Technical Institutes Shuts Down, Leaving a Hefty Bill

originally posted by: FamCore
a reply to: Willtell

Can you please elaborate on what you mean by this?

The next economic swindles are likely to revolve around educational school loans...this may just be the beginning.

Really piqued my interest

Ripping Off Young America: The College-Loan Scandal

The federal government has made it easier than ever to borrow money for higher education - saddling a generation with crushing debts and inflating a bubble that could bring down the economy

Wherever there’s money swindlers circle like sharks and hogs grunt

The educational loan money is ripe for a scandal that does a job on the economy like the hogs did in 2007-8

Its just too much money so the greedy will eventually strike

a reply to: Willtell

My daughter took a three month course in phlebotomy, cost three thousand, she can't find work and they keep pumping the students out.

a reply to: SLAYER69

Bingo. Same here. The recruitment tactics were shady as hell. They promised one thing and then after the loans are done, papers are signed, they break the news that "You should really look into what we offer on our other campus two or three states over." Or "In your fourth quarter, you will get an introductory course on that field of study. It's not good for credits or anything, but it will help you decide if you want to pursue that as a career."

They were shameless greedy bastards.

originally posted by: FamCore
a reply to: SlapMonkey

Guess I won't be seeing any more of those commercials then.

What's next, Devray University, Phoenix, or Walden University? JK, but I could go without their commercials as well.

Will this have implications for people who have degrees from ITT? Does it look bad on their resume now?

Their degree's were basically toilet paper already. They're about the same afterwards.

originally posted by: greencmp
I imagine most people drop education from their CV once they have some real experience, particularly trade degrees.

The way it goes for my field, is you always leave education on, that way it gets past the HR filters that are just looking for a degree. After that you talk about experience and what you know.

originally posted by: Sparkymedic
I can almost guarantee that this is the beginning of the end...of the market as we know it.

The student loan bubble, on top of the auto loan bubble and the fact that there are $500,000 homes for sale in LA's war zones, along with the $1,000,000+ homes in San Francisco that are less than 1000sq/ft. That's just the half of it. Then take a look at Uber, yahoo, FB, Snapchat...all that crap is supposed to be worth billions of dollars??? What a joke!

Buckle up...it's going to be a bumpy ride folks!

Uber and FB are definitely worth billions. One is data mining, the other completely revolutionized the taxi industry and created millions of jobs. Yahoo is dying, no clue on Snapchat.

originally posted by: Stormdancer777
a reply to: Willtell

My daughter took a three month course in phlebotomy, cost three thousand, she can't find work and they keep pumping the students out.

I deeply sympathize with your daughter many of these schools are pure scams.


Maybe she can take the school to court and get rid of that loan.


A friend of mine was lured into one of those Cisco router courses (AND THEY CLAIM WOULD GET YOU A JOB MAKING 100, 000 DOLLARS A YEAR!) and he was over 60 and took out a 10, 000 dollar loan!

I tried to tell him this was a scam school but he didn’t listen.

originally posted by: JIMC5499
All that I know is that over the years I have interviewed dozens
of ITT graduates and was not able to hire any of them.
...
One of my questions was "Where would you find information on a 6-32 thread?" ...

Back before the late 60's ITT didn't have it's greedy meat-
hooks in Allied yet. Allied Institute of Tech, south Michigan
in Chicago. It was about the same distance from Roosevelt Rd.
south as the 'Nostrils of the Dragon', Roosevelt U was north.

Probably one of the three best trade schools in the country--
until Conglomo came in and butchered the curriculum.. This
while jacking the tuition about 35%. I bought in anyway in '69.

Found out the hard way (after a quarter) I couldn't transfer
credits to a 'real' engineering school; but never regretted
the work. It made the math year of my formal apprenticeship
a breeze: and made me use all the f buttons on my INTERNAL
calculator.

In retrospect -- the instructors there were at least as compe-
tent as any I've conversed with anywhere : and the head
start on my real, lifelong engineering study was strong like bull.

Wonder what the tripe was they were shoving in the last five
years in Chi-town? I shudder to think where product quality
goes when the schools go first...

PS
This other guy knows his stuff. #36 (.110) tap drill.
Burned into my brain, JIMC.
M Handbook 23rd Ed, got it new. Yeah, I am that old:
mule pulleys and everything.
I hate Xpress taps in waxy stainless, like Indy hates snakes.

a reply to: SlapMonkey

If the institute was practicing predatory lending and low rate of job placement, I guess they have to restructure the business model or something.

I pray some them graduates don't catch too much fallout.

a reply to: Willtell

This was our local community college, and she had to pay cash up front.

a reply to: SlapMonkey

..............I was currently teaching there................

I did not hear a thing, and in fact was scheduled to start teaching classes for the next quarter again next week!

This sucks

a reply to: GraffikPleasure

As much problems as that school had, it is not the fault of the school that people go to them when they are not accredited, you need to research that on your own like my wife did for her masters.

People complaining about not having jobs after graduating.... There's a lot more to it than that let me assure you. For instance I know there was a nursing program that was 18mo, sure you could cheat through school but if you didn't pass the test at the end that was like a state or federal test you have a worthless degree... Guess what that's ANY school you go to. Are all situations like that, no.

The students you get are almost always all working full time jobs as well that are low paying... Most people I taught that you get a piece of paper they give you a job. Tbh I thought the same thing when I went to my four year school.

All I'm saying is, like anything, we don't know the whole story.

originally posted by: GraffikPleasure
a reply to: SlapMonkey

..............I was currently teaching there................

I did not hear a thing, and in fact was scheduled to start teaching classes for the next quarter again next week!

This sucks

And as much as I complain about the taxpayer getting screwed, you 8,000 employees and the students are the real victims, here, because you guys have it DRAMATICALLY affect your lives immediately.

I wish you the best on finding replacement employment--sounds like they really did this in a pretty terrible way (no notice).

a reply to: SevenThunders

Here's the problem--just like when we are growing up and relying on mommy and daddy to support us financially--if we need their money to live, we have to do what they say concerning that money. I make my son save money, even though he doesn't want to, and sometimes that means that he can't do something that he wants to do.

Obviously, this ITT debacle is a much more dramatic example, but the point is that if you accept money from daddy government, you suddenly have to play by his rules. If a business does not want to be told what to do, then don't accept money from the government.

I understand the gov't-funded student loans--that's a gimme these days, but that apparently only accounted for about 60% of the $5b dollars that they got from the government; it's that other $2b that, by accepting it, hands over control to daddy's directions.

As the bible says, the borrower is slave to the lender.

originally posted by: Aazadan

originally posted by: greencmp
I imagine most people drop education from their CV once they have some real experience, particularly trade degrees.

The way it goes for my field, is you always leave education on, that way it gets past the HR filters that are just looking for a degree. After that you talk about experience and what you know.

That makes sense, I gathered that my perspective is atypical.

Being that there aren't any valid degrees for software development, I never found it helpful to include it. Now that HR people are beginning to understand that, they seem to have switched over to the certification circus.

originally posted by: Willtell

originally posted by: Stormdancer777
a reply to: Willtell

My daughter took a three month course in phlebotomy, cost three thousand, she can't find work and they keep pumping the students out.

I deeply sympathize with your daughter many of these schools are pure scams.


Maybe she can take the school to court and get rid of that loan.


A friend of mine was lured into one of those Cisco router courses (AND THEY CLAIM WOULD GET YOU A JOB MAKING 100, 000 DOLLARS A YEAR!) and he was over 60 and took out a 10, 000 dollar loan!

I tried to tell him this was a scam school but he didn’t listen.

It's not the school which guaranteed the loan though, it's the federal government and you cannot default. There is no way out of federal loans and offering one would open the floodgates anyway.

a reply to: greencmp

There is no way out of federal loans

Apparently, there is a way and it is being offered by the Dept. of Education for ITT students in this situation.

Federal law gives the Education Department broad discretion to forgive student loans for borrowers who claim they were defrauded or that their college violated state laws. The government on Thursday essentially made the case that ITT has done that, inviting former students to request what could amount to hundreds of millions of dollars in loan forgiveness. The rule applies to all former students with federal loans, but does not cover private loans.

a reply to: Zarniwoop

But of course, that money was already paid out so unless it's being refunded by the school, it's on the taxpayer.

I can imagine a massive wave of lawsuits claiming fraud against all universities, possibly even brought by the federal government itself but, again, if the money is gone, it's on us.

a reply to: greencmp

But of course, that money was already paid out so unless it's being refunded by the school, it's on the taxpayer.

That is actually what kicked the closing into gear

Even more onerous, though, is a requirement that ITT must increase its reserves from $94.4 million to $247.3 million, or 40 percent of federal student aid the company received in 2015. ITT has been ordered to provide a letter of credit for the beefed-up surety, which is meant to support students in case the company closes, within 30 days.

double post