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Charges that Corinthian trapped students in predatory loans and lied about the success of its programs ultimately led to government lawsuits and loss of its access to federal funding and bankruptcy. Now some are wondering whether ITT will meet the same fate.

The company that operates ITT Technical Institutes said Tuesday that it was permanently closing all its campuses nationwide, blaming the recent move by the U.S. Education Department to ban the for-profit college operator from enrolling new students who use federal financial aid.

Earlier in the month, a group that accredits ITT found that the chain failed to meet several basic standards and was unlikely to comply in the future.

King said current or recently enrolled students could be eligible to have their student loan debt forgiven and might be able to transfer ITT credits to another school.
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Last month, in addition to the ban on enrolling new students who used federal aid, the U.S. Education Department also prohibited ITT from awarding its executives any pay raises or bonuses and said it must develop “teach-out” plans that would help current students finish their programs at other colleges if the chain shuts down. Current students, it said, could continue receiving federal grants and loans.

More than 100 former students of now-shuttered ITT Technical Institutes announced Wednesday they'll no longer make payments on their federal student loans, part of a small but growing revolt against what they call the Obama administration's negligence in policing for-profit colleges.