PHOENIX - Consumer advocates are speaking out after ITT Technical Institute closed all 130 of its for-profit schools on Tuesday, including four Arizona locations - three in Phoenix and one in Tucson. The move leaves 35,000 students in limbo nationwide.
The move came after the U.S. Department of Education banned ITT from accepting new students with federal education loans.
Whitney Barkley-Denny, legislative counsel for the nonprofit Center for Responsible Lending, said the closure ultimately is a good thing because ITT's priorities have been questioned for years.
"Well, ITT has a long history," she said. "It first really started coming to light in 2012 with the Harkin Report, which showed that ITT was spending enormous amounts of money on CEO salaries and advertising, and not so much money on students and their education."
Over the years, many students have made complaints that ITT exaggerates both its graduation rates and its ability to place graduates in the job market. ITT has called the government crackdown "unwarranted and unconstitutional."
Barkley-Denny said she thinks ITT has been less an educational institution and more of a call center that used a cynical method known as a "pain funnel" to sign people up.
"And what they would actually do would be trained to 'find the student's pain' - whether that was, you know, being a single mom, not having enough money for groceries, something like that," she said, "and then use that to recruit the student into the school."
ITT charged $26,000 for a two-year associate's degree, Barkley Denny said. Students who are enrolled now or left without a degree in the past four months may be eligible to have their federal loans forgiven, and should contact the U.S. Department of Education at 800-4FEDAID (800-433-3243). Information also is available at studentaid.ed.gov.
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Virginia student loan borrowers will feel the effects of federal courts blocking more student loan forgiveness.
The Biden administration forgave around $3.5 billion of the state's student loan debt, but borrowers will not see reduced payments on July 1, due to court injunctions which could upend the SAVE program. Student loan debt creates burdens whether the borrowers earn their degree or not.
Kelsey Coweger, press secretary for the advocacy group Progress Virginia, said the debts have tanked homeownership rates for younger generations.
"One of the criteria that you're gauged on is how much debt you have and the ability to pay those debts back," Coweger explained. "There is a whole generation of people who are losing these really critical wealth-building apparatuses that have been available to older generations, that will make things harder for them in the long run."
The average Virginia borrower's debt is just under $40,000 but the state's total student loan debt is $43 billion. Cowger feels student loan forgiveness has been misunderstood. She noted people using the program are not the ones attending expensive private colleges or getting what some see as "worthless" degrees.
Some blame students' inability to budget as a reason student loan debt has grown. But Cowger pointed out systemic changes have played a role, like states not funding public schools and universities the same way they used to. Now, most of a college's budget comes from tuition.
She argued the federal government could take different steps to help students graduate in a better financial position.
"The government could expand its access to Pell grants," Cowger suggested. "The government could stop taking interest on the student loans that it provides. You know, I don't know that the government should be in the business of making money off the backs of students trying to get an education."
Cowger added a federal regulatory framework could be established so student loans are not predatory. She thinks states funding public colleges should be seen as an investment in an educated workforce, with loans which can and will be repaid. One-third of federal student loan borrowers defaulted on their debt in the last 20 years.
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New Mexico consistently ranks low in childhood educational achievement, but its path to a college degree is being recognized at the highest levels.
President Joe Biden has applauded New Mexico for leading the way in no-cost higher education, along with loan repayment and loan-for-service programs.
Stephanie Rodriguez, the state's secretary of higher education, said a recent "gold star" designation by the Campaign for Free College acknowledges the state's tuition-free Opportunity Scholarship program as one of the most accessible, inclusive and all-encompassing in the country.
"We know that when people are educated beyond high school they have higher wages, they can have family-sustaining careers and they can be successful in whatever endeavor they want to go into," Rodriguez pointed out.
She noted the state's Opportunity Scholarship, Lottery Scholarship, grants and other financial aid programs make it possible for nearly all New Mexicans to pursue higher education without having to worry about tuition and fees. In addition to recent high school graduates, the program is open to returning adult learners, part-time students and immigrants, regardless of their immigration status.
New Mexico is one of the nation's poorest states, with some of the country's lowest K-12 educational outcomes, but lawmakers have significantly increased educational funding in recent years and created the New Mexico Early Childhood Education and Care Department.
Rodriguez emphasized since the college scholarship program was introduced in 2022, enrollment has increased every semester.
"We're moving the levers in other areas so that New Mexicans can be successful," Rodriguez observed. "We may not see it right now, but in the future -- because of the investments, because of the policies we put in place -- you're going to see us move up in education overall."
The Lottery Scholarship continues to cover full tuition for around 10,000 students each year. Rodriguez added New Mexico had the second-best enrollment growth of any state last year and remains in the top five this year, with first-time enrollment up 10%.
Support for this reporting was provided by Lumina Foundation.
Disclosure: Lumina Foundation for Education contributes to our fund for reporting on Education. If you would like to help support news in the public interest,
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Workers who help Washington state classrooms run are calling for higher wages.
Known as classified staff, their jobs include administrative work, transportation and custodial services. Unions representing workers, including the American Federation of Teachers of Washington and Washington Education Association, have launched a wage campaign to increase pay for these workers.
Anitra Wise, a para-educator with the Tacoma School District, helps teachers in the classroom and said her wages simply aren't enough.
"We have to work two and three different jobs just to catch up with the cost of living, including housing, groceries and things that we need to survive," she said.
With Washington state school districts out for summer, classified staff members face another challenge: the suspension of their low wages.
Wise said she's working at summer school this year.
"We have to supplement that income somehow, and I really don't get a summer, because I have to work just to supplement my income," she continued.
Wise added classified staff have many important jobs, including the work she does as a para-educator in the classroom.
"We're the glue that keep it together, do all the small jobs and the big jobs, too. Because without the team of para-educators, the teachers would not be able to teach, and para-educators are teachers also," she said.
Disclosure: American Federation of Teachers of Washington contributes to our fund for reporting on Budget Policy & Priorities, Early Childhood Education, Education, Livable Wages/Working Families. If you would like to help support news in the public interest,
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