Government tightens payments to for-profit college ITT Tech
WASHINGTON - U.S. Education Department officials are placing new limits on federal student aid administered by struggling for-profit college chain ITT Educational Services.
The move comes after the government determined that ITT was failing to comply with previous orders to improve its financial controls. The government said ITT will now be allowed to pay federal education funds to students only after they have attended classes and been certified as eligible by a school representative.
The company said in a statement that it will meet the new restrictions and does not believe they will have a material negative impact on its financial results or delay aid to eligible students.