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California Suspends ITT Tech GI Bill Eligibility

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The California Department of Veterans Affairs (CalVet) has ordered 15 ITT Technical Institute locations in that state to stop enrolling new or returning students who fund their educations with GI Bill benefits.

An agency within CALVET that approves veterans training programs issued a suspension notice on May 15, 2015 to ITT Educational Services, which operates schools in 39 states under the names ITT Technical Institute and Daniel Webster College.

The suspension only stops future enrollments or reenrollments of Veterans, or their dependents, using the GI Bill it does not affect current students.

The suspension was initiated by CalVet as a result of ITT’s apparent inability to produce audited financial statements required by the U.S. Securities and Exchange Commission and the U.S. Department of Education, said Keith Boylan, CalVet Deputy Secretary of Veteran Services.

"CalVet takes very seriously our duty to ensure our California Veterans receive the education and training they are paying for with their earned GI Bill benefits," said Boylan, "We suspended ITT because ITT does not meet the required accreditation standards for approval."

On May 12, the U.S. Securities and Exchange Commission (SEC) announced fraud charges against ITT and two of its top executives for allegedly lying to investors in an alleged scheme to cover up losses from student loans.

The company responded in a statement that the SEC’s action was “mistaken” and said that it will fight the charges.

“We vehemently disagree with the SEC’s position and we are confident that the evidence does not support the SEC’s claims,” the Carmel, Indiana- based company stated. “We are eager to have the court clear our reputation that has been unnecessarily endangered by the SEC’s action.”

Approximately 1,400 California veterans are attending ITT schools on the GI Bill.

If the company does not produce the required financial reports by July 13, it will have its authorization as a VA provider in California withdrawn and students, including those currently enrolled, would no longer be able to use GI benefits to pay for classes at ITT campuses in California.

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