Is All ITT Colleges For-Profit?
You may have heard of for-profit colleges. Perhaps you’ve even considered attending one yourself. There are many positive things about for-profit colleges, but they can also be quite expensive. Many of the students enrolled in for profit colleges are not able to afford their tuition, and end up owing more on their student loans than their degree actually cost. While a for-profit college can be an option for higher education, you should consider carefully before deciding if it’s the right choice for you.
One of the first things you should ask yourself is whether or not you’re choosing an ITT Technical Institute for your college education. ITT is a for-profit college that has received mostly government financial aid money over the years. As a for-profit college, it is not held to the same academic standards as other schools that receive government funding and accreditation. As such, not only can you expect ITT Technical Institute to be more expensive than a traditional college, but you may not even be able to find a job in the field you wish to pursue after graduation.
This is important because ITT may offer you a loan at a lower interest rate than other for-profit college tuition loans. However, because you are technically attending an ITT Technical Institute, you are considered a credit risk by your U.S. Department of Education, and you will be expected to pay off your loans with student loans. These student loans may carry very high interest rates — up to 40% — and thus, your student debt will likely be much larger than the loan itself. Not only will this result in added student debt, but it will also likely result in a failing grade and possible failure of your credits.
Another thing to consider is that for-profit colleges do not have to report their accreditation to the U.S. Department of Education. As such, when you apply for federal student loans, the agency will look for ITT’s accreditation. However, there are certain circumstances in which an ITT Technical Institute may need to submit its accreditation application. For example, if the school participates in a state student loan program, or participates in a federal student loan program, the government will require it to submit its accreditation.
In addition to having less selective students, you also stand a greater chance of experiencing ITT’s debt relief programs. ITT’s debt management plan allows students to consolidate their multiple student loans into one easy payment, reducing the amount of interest you have to pay. But because you are taking out student loans for ITT, the federal government does not need to verify your academic background. It’s important to keep in mind that when choosing to attend a for-profit college, you often run into ITT accreditation problems.
The National Center for Education Statistics reports that for-profit ITT colleges experienced greater accreditation problems than other institutions. Specifically, for-profit colleges had higher default rates and more application denial than all other colleges. The report did not break down data for ITT colleges by state. ITT accreditation is especially important when borrowers are applying for federal student loans. Many students mistakenly believe that they are applying for a traditional college and therefore do not realize that federal student loans do not accept ITT Credit.
Unfortunately, for-profit colleges were not always treated with respect by the federal government when it came to grants and student loans. When the government began investigating for-profit colleges in 2009, ITT received its share of bad press. Some media outlets wrote that the for-profit colleges were “booming institutions of higher learning” that “routinely rob schools” of millions in federal student loans and grants.
However, ITT’s revenue streams appear to have recovered somewhat from this negative media attention and for-profit colleges are once again offering students the opportunity to receive quality training and education. ITT’s online associate degree programs have also gained widespread popularity. Both online associate degree programs and on-campus programs are available through both traditional community colleges and online universities. Students can complete a full two-year degree in an ITT college using federal student loans and grants, and with little experience, these programs often offer better value than traditional community college studies.