INDIANAPOLIS, Ind. (WOWO): The U.S. Department of Education is banning the for-profit college chain ITT Educational Services from enrolling new students who use federal financial aid.
Department officials announced the ban Thursday among a series of measures meant to increase financial oversight of the company, which has been the subject of state and federal investigations focusing on its recruiting and accounting practices.
ITT also is being ordered to pay the department $152 million within 30 days to cover liabilities in case it closes, and the company is barred from giving pay raises or bonuses to its executives.
Education Secretary John King says it would be irresponsible to let new students enroll amid concerns about the chain’s ability to operate.
ITT officials did not immediately comment. The company enrolls 45,000 students in 38 states.