All ITT Technical Institutes are closing: What this means for current ITT students

ITT Educational Services announced Tuesday it's permanently ceasing operations at all of its ITT Technical Institutes.

ITT Tech, known for its TV commercials, had one location in Rancho Cordova and Stockton.

The company said the closures are due to an investigation and sanctions by the U.S. Department of Education (ED). ITT Tech was the subject of state and federal investigations focusing on its recruiting and accounting practices.

Last week the Associated Press reported ED banned the for-profit college chain from enrolling new students who use federal financial aid-- ultimately forcing it to shut down for good. The company makes 80 percent of its cash revenue from Title IV federal aid, including Pell Grants and student loans, according to The Wall Street Journal.

The actions will affect nearly 40,000 current students and more than 8,000 employees, according to an ITT Educational services press release.

Here are four things you need to know about the ITT Tech closure:

1. Can ITT students apply for loan discharge?
   If a student is currently or was recently (within past 120 days) enrolled at ITT, they may be eligible to have their federal student loans for their program discharged. The federal loan debt would be wiped away and the individual would have the option of restarting their education somewhere new.
2. What happens to current students' credits? Students who want to continue and complete a program at a different school -- especially those who are close to graduating -- may be able to transfer credits, according to the U.S. Department of Education. ED said it's reaching out to community colleges and encouraging them to be flexible in allowing ITT Tech students to transfer credits. The department is also helping students retrieve their student records. It's important to note -- transferring credits may limit the ability to have federal loans discharged. Closed school discharge may be an option if students enroll in a different program that doesn't accept ITT credits.
3. Where can ITT Tech students get additional information and details for their next steps?
   The Department of Education is sponsoring a series of national webinars for all ITT students to share information and address questions and concerns. The webinars are scheduled for Wednesday, Sept. 7, at 10 a.m., 12 noon, and 2 p.m. Eastern time. Students can check the ITT Announcements page for the webinar link and for updates.
4. Is the Department of Education looking to close other for-profit schools?
   A federal agency voted on June 23 of this year, to shut down the Accrediting Council for Independent Colleges and Schools. ACICS is responsible for accrediting many for-profit school, including ITT Tech Institutes and the Corinthians College chain-- which shut down in 2015 amid fraud allegations. The organization gives the stamp of approval for colleges to receive federal money. The Department of Education is deciding on it's final fate and if a decision is finalized, the hundreds of institutions ACICS accredits-- which enroll up to 800,000 students-- would have 18 months to find a new accreditor or lose the access to federal money. This puts the schools ACICS accredits at a similar risk of closure as ITT Tech. ACICS has the right to appeal a decision in court.