Doors were bolted shut and parking lots emptied at ITT Technical Institutes around the country this week after the chain of for-profit colleges announced it was closing for good.
At some campuses, though, this was not the first time students and employees found themselves locked out. More than a decade ago, in 2004, federal agents, search warrants in hand, swooped into the company’s offices in eight states, closing schools briefly as they hunted for evidence of fraud related to student recruitment, enrollment, dropout rates, grade inflation, loans, and reported job placements and salaries.
READ MOREhttp://nyti.ms/2bV9oE1For-profit colleges were a magnet for billions of dollars in federal student loans and grants to low-income students. In 2010, they gobbled up more than $32 billion, a quarter of all federal financial aid, nearly double their share less than a decade earlier, the Senate committee inquiry found. Hundreds of millions more flowed in from the Pentagon and veterans’ programs through the G.I. Bill.