The U.S. Education Department took new actions Thursday against ITT Educational Services Inc. to safeguard students and taxpayers.
The Education Department is increasing its financial oversight of the for-profit college and banning it from enrolling new students using federal financial aid.
"This move follows determinations made by the school's accreditor, the Accrediting Council for Independent Colleges and Schools (ACICS) that ITT 'is not in compliance, and is unlikely to become in compliance with [ACICS] Accreditation Criteria,'" the Education Department said in a press release. "This comes amid increasingly heightened financial oversight measures put in place by the Department beginning in 2014 and continued and expanded in June 2016 due to significant concerns about ITT's administrative capacity, organizational integrity, financial viability and ability to serve students."
U.S. Sen. Dick Durbin (D-IL) applauded the Education Department for taking action against ITT.
"For too long, ITT Tech and its executives have gotten rich off taxpayers while misleading and taking advantage of their students with Corinthian-style deceptive and abusive practices," Durbin said in a statement. "Today, the Department of Education announced strong action to help prevent additional students from being harmed and more taxpayer dollars from being wasted on this company faltering under the weight of its own wrongdoing. I strongly commend Secretary King and the Department. Students should be warned: ITT Tech is not a smart choice for your educational future."