Thread regarding ITT Educational Services Inc. layoffs

There's no "teach out". Its done...the staff was told Friday not to show up. I stopped by the local campus...and the place was basically abandoned. Doors open, but no staff, one instructor (but her classroom was locked) and a few students wondering what was going on. This is not a smooth dignified ending for ITT. Its chaos.

Once ESI files for bankruptcy the funds become property of ED to cover tuition paid by Title IV. There will be no teach out.

All of you have misunderstood the defintion of "teach-out" ...there are 2 applications of that term.

1. Students who are continuing students at a school sometimes can complete their degree programs with that school. (ie: as in some ITT campuses have already been on a "teach-out" by not enrolling new students, but continuing students get to complete existing degree programs.

2. The definition the ED is using, AND the teach-out plan that ITT was required to present in the August 2016 show-cause directive meeting, was a plan detailing what other schools could concievably accept our students to complete their degrees, THEREBY NOT CAUSING THE ED ANY FURTHER LOSSES AS THEY WOULD NOT HAVE TO FORGIVE THOSE LOANS AND EAT THE LOSSES. ie: the 418 million the ED had to eat from Corinthians discharged student loans.

So please do not be delusional. The ONLY way ITT will be able to "teach out" at ANY of ITT campuses, including online, will be if ITT can post a 152 million dollar surety bond by end of Sep 2016, which is obvious that they CANNOT afford to do so.

Market share of the company is now only 9 million, with stock at 55 cents a share.

Read the actual documents and stop believing internal nonsense.

Look for a new job, ITT will be closed to all students by EOQ for all campuses on 9/12.

The world will be a much better place with ITT put into bankruptcy

The letter of credit assures the Secretary that funds will be available from wich to make refunds, provide teach-out facilities,and meet institutional obligations to the Department.

The above sentence was taken from page three of letter the DOE sent ITT. I suggest you take some time and read the entire letter.

The DOE has a blog and it lists three options current student have:

1. Continue at ITT with federal aid

2. Transfer to a college that accepts your credits

3. Take a pause in your education and see how the matter resolves itself

Monday or Tuesday we will know if ITT will teach-out at their campuses.

As a DOF, I can only say that the Title IV funding has been very slow coming in since last March! I have questioned this time and time again... With no concrete reason why the money is not being released in a timely manner from the Department of Education.

Given this fact, I'm not depending on the DoE releasing ANY money to us in order to teach out. This is a disaster for our students!

Exactly! The DoE will take their share FIRST! There will be N0 funds for a "teach out".

The students in the middle or near the end of finishing their degrees, will be left with no where to go!

The DoE made a similar demand of Corinthian (only $30 million) and they filed BK. The students were left to search for a college that would accept their credits. At our local State University, only 5 students were allowed to enroll and transfer their credits! I know this personally because a colleague who works at the university was one of the people who helped to evaluate over 1000 transcripts from those students. He said they could only bring in 5 students and that was partly due to the fact that the university is overcrowded and because of the transferability of the student's credits.

DOE already has around $94 million to fund the teach out. The current students will continue to be eligible for student loans and grants. Questions that need to be answered are will the teach out be at ITT's current campuses or at ITT's former competitors campuses? Will ITT consolidate nearby campuses to save on overhead? Out of 130 some campuses I would think some of those might possibly be profitable. Are the profitable campuses staying open?

Escrow funds will be used to reimburse ED for any Title IV monies that are owed for loan forgiveness. There will not be a teach out. Ed won't allow it.

@J6Wv5ym

You seem to be forgetting that the escrow funds demanded by DoE can themselves be used to teach out.