ITT Educational Services is shuttering its technical schools in one of the biggest college closures in American history. The company is blaming the Department of Education for demanding $153 million, nearly double ITT's cash on hand, in collateral to the government in case ITT suddenly failed, Bloomberg reports.
As a result, the for-profit college will close more than 130 campuses and 40,000 students will be left adrift. "We believe the government's action was inappropriate and unconstitutional," ITT said in a statement. ITT has faced allegations that it misled students into believing it had higher success rate placing graduates than it actually did, and the company was facing lawsuits; it has denied all such accusations.
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