ITT Tech no longer enrolling new students who use federal aid

CHICAGO (WLS) -- ITT Tech is not enrolling new students since action was taken against the for-profit college last week.

ITT Tech has four Illinois campuses. It is now banned by the U.S. Department of Education from enrolling new students who use federal financial aid. The company must pay millions to the department to cover loses to taxpayers on the chance the school closes.

As the ABC 7 Consumer I-Team first reported last fall, for-profit colleges are under heavy scrutiny from the federal government for taking advantage of students who qualify for federal student aid.

ITT Tech is under investigation by 18 state attorneys' general and is being sued by two, for misleading and deceptive practices.

U.S. Senator Dick Durbin has asked community colleges across Illinois to assist students.

"As a result of its actions, ITT Tech has put the futures of tens of thousands of students across the country in jeopardy," wrote Durbin. "Illinois' community college system provides students with a quality education and at a fraction of the cost of for-profit colleges."

In a recent letter to the Securities and Exchange Commission, ITT said it will not be enrolling new students because nearly all of its students use federal financial aid.