Avoid loan traps, students — ITT Tech closings reinforce advice

Avoiding high student loan debt topped our list of financial advice to students in the video above — and that was before for-profit college chain ITT Tech announced Tuesday it was closing more than 130 campuses including West Palm Beach.

3-money-mistakes-captureITT Educational Services says it was forced to do this after the U.S. Department of Education banned enrolling new students who rely on federal financial aid. U.S. officials cracked down on institutions that arranged billions of dollars in government grants and loans but, in their view, often failed to deliver on promised training and jobs.

Christine Lindstrom, higher education advocate for the U.S. Public Interest Research Group, applauded Tuesday’s developments: “The rules of the game in higher education have been clear for some time: if for-profit colleges treat students fairly and honestly, then they’re eligible to receive federal financial aid. In the case of ITT Tech, there’s a long, well-documented history of this company pushing high risk, predatory loan products on their students.”

The ITT website says “We are currently not enrolling new students.”

Even at more traditional, non-profit colleges, we recommend maxing out on grant and work opportunities first. Yes, loans can make sense if the degree leads to higher earnings, but students owe $1.3 trillion  — approaching $30,000 each.

Don’t make Future You regret Student You. Avoid every unnecessary penny of debt.

 

 

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