Understanding the Cost of ITT Tech

ITT Technical Institute, also known as ITT Tech, was a renowned for-profit college offering various degree programs in technology and engineering fields. However, financial troubles and regulatory scrutiny forced the closure of its campuses in September 2016. Understanding the cost of attending ITT Tech before its closure is crucial, as it provides insights into the financial burden that might be faced by current and prospective students.

Cost Variability at ITT Tech

Before its closure, the tuition for attending ITT Tech varied significantly, ranging from approximately $40,000 to $60,000 for a degree, excluding additional costs such as textbooks, supplies, and fees. These figures are indicative of the substantial financial commitment required for education at an institution of this nature.

A Personal Insight into ITT Tech Costs

I graduated from ITT Tech earlier this year, and my experience with the financial burden has been stark and surprising. The sheer amount of debt I accumulated, up to $80,000 in student loans, is a testament to the high cost of education at ITT Tech. Not only were these loans necessary to finance my studies, but I also had to pay back close to $20,000 already, exacerbating the financial strain.

Types of Loans and Their Complications

My student loans are primarily federal, with interest rates hovering around 6.8%, and they are split between various lenders such as PSEG Sallie Mae and a few banks. While it is manageable, the complications of certain loans, such as those from PSEG, make them particularly challenging to handle. I strongly advise avoiding such lenders if at all possible.

Employment Prospects and Financial Impact

Even if ITT Tech managed to secure employment for its graduates, starting salaries would typically be around $15 to $20 per hour, which is far from the high expectations one might have had. My current repayment plan, which requires $1,000 per month, is a substantial financial commitment, and it's worth noting that this amount exceeds the cost of community college education in interest alone.

Calculating the True Cost

Using a financial aid calculator, I estimated that it would take $110,476.80 to pay back my loans. However, my salary is significantly less than this, and I cannot meet this payment plan. Extending the repayment terms to reduce monthly payments only increases the overall interest, such as lowering the monthly payment to $600, which would result in over $66,000 in interest and a total payment of close to $150,000 over 20 years.

Considering Alternate Educational Routes

Given the high cost and the long-term financial burden, it is essential to consider alternative educational routes. Community colleges and other accredited institutions often offer similar degree programs at a fraction of the cost. These institutions provide a more affordable and sustainable path to education and future careers, making them a more viable option for many students.