ITT Tech Closes All Campuses Nationwide; Employees File Lawsuits

The for-profit college chain ITT Educational Services is shutting down its campuses days after the U.S. Department of Education banned it from enrolling new students who use federal financial aid.

The company, which operates vocational schools, announced “with profound regret” in a statement Tuesday that it is ending academic operations at all of its more than 130 campuses across 38 states.

The company, based in Carmel, Indiana, says its move will have an impact on hundreds of thousands of students and alumni as well as more than 8,000 employees.

ITT Educational Services says it was forced to take the action after the U.S. Department of Education issued sanctions Aug. 25, including a ban on enrolling new students who rely on federal financial aid.

Two employees laid off by the parent company of for-profit college chain ITT Technical Institute have filed a lawsuit claiming the company violated federal law by not providing 60 days’ notice.

A business analyst at ITT Educational Services Inc.’s Carmel headquarters and an instructor at two locations in California filed the complaint Tuesday in U.S. District Court in Delaware.

The Indianapolis Business Journal reports the lawsuit seeks class-action status on behalf of the 8,000 employees who are losing their jobs as a result of ITT’s decision to shut down more than 130 ITT Technical Institute campuses in 38 states.

ITT announced Tuesday it’s closing all 130 of its U.S. campuses, saying it can’t survive recent sanctions by the U.S. Department of Education.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)