ITT Educational Services, Inc., filed for bankruptcy protection seeking to liquidate its business after the federal government restricted financial aid to new students.
ITT Educational Services, Inc., one of the nation’s largest for-profit educational companies, filed for bankruptcy protection seeking to liquidate its business after the federal government restricted financial aid to new students. ITT was one of the nation’s largest for-profit educational companies in the United State. In August of this year, the Department of Education refused to allow ITT to enroll new students that were receiving federal financial aid. Student paying for their education at ITT with financial aid was a critical source of revenue for the company.
The filing follows ITT’s decision this month to close more than 130 technical college campuses across the country, a move that affected about 35,000 students and 8,000 employees.
ITT filed a voluntary Chapter 7 bankruptcy petition in United States Bankruptcy Court for the Southern District of Indiana. On its bankruptcy petition, it listed having assets of between just over $100 million to $500 million and liabilities of the same amounts.
