The Iowa College Aid Commission says about four dozen students are affected by ITT Tech’s closure.
The Iowa Attorney General’s office says it leaves students with two options, both with considerable drawbacks.
Students currently enrolled or who withdrew within 120 days of September 6 can apply for closed school discharge; this option would forgive their federal student loans but invalidate their credits.
Students can also seek to transfer their credits, but if they do, will be ineligible for loan forgiveness.
“Not a great situation either way really, when you’ve spent time and money trying to get an education and then the school’s failed you in this way” said Assistant Attorney General Nathan Blake.
Iowa’s College Aid Commission says that students opting to transfer their credits may find it challenging.
“This isn’t typical, this isn’t a typical situation at all. Whether a school will take these transfer credits really depends on the school. It’s going to be decided on a case by case basis” said Aid Commission Communications Coordinator Elizabeth Keest Sedrel.
DMACC is one institution that may accept ITT Tech credits.
Officials say they will be using an alternative credit program to decide if credits compare to their own.
This could include testing or a portfolio review of an incoming ITT Tech student.
The Iowa College Aid Commission does say ITT Tech is still an accredited university, and degrees are still valid for the thousands of Iowans who have them.
Assistant Attorney General Blake says he hopes future students will learn from this and research colleges of all types before enrolling.
“What’s the graduation rate? What is the default rate? How many students graduate and drop out and owe so much money that they can’t afford it? Are students getting jobs? Job placement rate? All of those things are really important for students to look into before they enroll” said Blake
Iowa is one out of 20 states investigating for-profit schools including ITT Tech.
The State Attorney General’s office says ITT Tech is also involved in litigation with the Consumer Financial Protection Bureau.
ITT Students can find more information about their options here: https://studentaid.ed.gov/sa/about/announcements/itt