On September 6th, ITT Tech was forced to shut down all if its national schools after President Obama's Department of Education pulled the plug on federal student loan support for their students. This action slammed the door on 35,000 students and 8,000 employees. One of the primary reasons for the Department of Ed's action was overly-stated promises of job placement.
In January, Obama's Federal Trade Commission effectively put DeVry University's national schools out of business for misleading students on career placement availability and expected incomes. Similarly, Corinthian Colleges were sued out of existence for misleading students. First by the California State's Attorney General, and then, the U.S. Department of Education and the U.S. Consumer Financial Protection Bureau.
Almost 80,000 students were affected by these actions; leaving them with the option to transfer their credits to another school. However, the chances that another school would accept all credits is probably low since, in effect, ITT Tech, Corinthian, and DeVry are types of "trade" schools with a more focused profession-oriented curriculum.
In my opinion, the Federal Government could have handled this differently by forcing the schools to rectify any problems they may have had. Then, giving the students the option of continuing at those schools or dropping out. Instead, most of these student may have lost months or years that they have invested towards their education.
ITT Tech shuts down all its schools; one student says he's 'angry times 10 million': http://www.latimes.com/business/la-fi-itt-tech-20160906-snap-story.html
Feds Sue DeVry University, Alleging For-Profit College Misled Students: http://www.huffingtonpost.com/entry/feds-sue-devry-university_us_56a904c7e4b0f7179928af63
Corinthian Colleges must pay nearly $1.2 billion for false advertising and lending practices: http://www.latimes.com/local/lanow/la-me-ln-corinthian-colleges-judgment-false-advertising-20160323-story.html