ITT Tech has decided to close its doors permanently.
After the recent decision from the Department of Education to ban the for-profit vocational college from enrolling new students with federal student loans, ITT Tech has decided to close its doors permanently.
The news came as a shock as the company has been in business since 1969 and until today operated over 130 campuses in 38 states. In recent years, the company has come under increasing state, national and federal investigations into its recruiting and accounting practices as well as its financial viability.
For previous ITT Tech students now looking for student loan forgiveness options, they may be interested in the closed school discharge program. The closed school discharge program offers the benefit of having your loan discharged completely if the school closes while you are currently enrolled, and you cannot complete your program because of its closure. However, borrowers that transfer their credits to another institution would no longer be eligible. Under the closed school discharge program, loan amounts forgiven are treated as taxable income and may trigger a substantial tax burden.
Another great interim option would be an IBR program. The benefit of an IBR is that it’s based strictly on what you earn, which allows for a more affordable monthly payment that is capped at 10-15% of your discretionary income. Also, an IBR program offers the long-term benefit of loan forgiveness after 20-25 years of payments depending on when the loan was taken out. Currently, under IBR programs, amounts forgiven are also treated as taxable income.