The only technical higher learning institute in South San Joaquin County closed its doors on Tuesday morning as part of a sweeping announcement that shuttered facilities in 38 states.
The ITT Technical Institute – which operated a school in Lathrop – closed indefinitely after a prolonged fight with the Federal government that centered on for-profit colleges and technical schools using federally guaranteed student loans to help students pay for college.
The Indiana-based school, which operated 130 campuses and was a company publically traded on the New York Stock Exchange, ceased its operations on Tuesday after it was announced that students could no longer use federally-backed loans to pay for the college after numerous reports and investigations determined that the post-graduation benefits were nowhere near the amount of money that students invested. Individual states began either placing restrictions or launching investigations in the name of upholding criminal protection statutes.
Just last year the California Department of Veteran Affairs ordered ITT Technical Institute to stop enrolling new or returning students who were paying with the school through their GI Bill allotment.
“I am deeply saddened by the news of ITT Technical Institute closing campuses nationwide – including here in our city,” Lathrop Mayor Sonny Dhalwial said. “ITT has been in Lathrop since 1997 and has served a lot of students in our area. We will do our best to pursue another vocational training institute.”
According to Dhaliwal, the closure is a blow for Lathrop as the city tries to position itself as a growing hub of commercial opportunity for Northern California companies looking for a logistically-friendly and affordable option to either relocate or expand – trying to catapult off of the decision of Tesla to locate a manufacturing and distribution facility inside of the city.
And according to Tom Patti, who is challenging gubernatorial appointee Moses Zapien for the San Joaquin County Supervisor position that includes Lathrop, a higher-level of education amongst the workforce is one of the requirements of Silicon Valley companies who are looking to expand.
But while the decision announced on Tuesday was shocking to students and the communities they serve, it wasn’t completely without warning.
ITT is just the latest in a string of for-profit degree or certificate-granting institutions that have closed their doors after the Federal government began investigating job placement rates and the benefits afforded to students who often finance their educations through loans that are government backed.
Last year Heald College, which was founded in San Francisco in 1863 as a business college and operated a campus in Stockton, closed all of its locations throughout the Western United States following a government investigation. The campuses were operated by Corinthian Colleges Inc., a for-profit company that declared bankruptcy after a series of lawsuits and government findings that alleged that the entire foundation of the campus was based off of misrepresentation that essentially exploited students for financial gain while offering very little in terms of promised job placement upon graduation.
The decision will affect 35,000 students who were preparing for the start of classes this month, and 8,000 employees that will now be without work. All of those students and those that left within the last 120 days would be eligible to have the loans taken out for ITT forgiven if they wish to pursue their education elsewhere according to statement issued by the U.S. Department of Education. The federal agency , according to the Los Angeles Times, has been working with community colleges near the closed sites to make the transition easier for students who were affected.
The only college-level facilities left operating in the South County are satellite campuses of San Joaquin Delta College – which manages a small classroom and agricultural facility in Manteca, a cluster of classrooms in Tracy and a large campus in Mountain House.
“ITT Technical Institute’s closing is a huge loss for the Lathrop community,” said Steve Macias – who is challenging Dhaliwal for Lathrop’s mayoral seat in November – in a release that noted that many Lathrop residents attended and worked at the local campus. “Our top priority is to ensure that our local students and teachers are aware of the educational opportunities available to them throughout San Joaquin County.
“Lathrop is, now more than ever, in need of attracting higher education in order to ensure the well-being of our community.”