Medtech College, a for-profit chain owned by JTC Education Holdings, closed its campuses in Falls Church, Silver Spring and the District on Wednesday, less than a month after Department of Education cut off access to federal loans and grants at those locations.

Company officials say their “substantial efforts” to resolve the dispute with the department proved unsuccessful, forcing the closure of campuses that have served the community for over 70 years. Medtech specializes in medical education, offering degrees and certificates in nursing, medical billing and dental care.

“Medtech remains steadfast in its belief that the denial of recertification and basis upon which the decision was made are without merit,” the board of directors said in an email to the Washington Post. “We have made plans for other post-secondary educational institutions in the area to meet with Medtech students to provide opportunities to transfer and continue their education.”

Troubles at Medtech emerged when investigators in the department’s enforcement unit found widespread misrepresentation of job-placement rates and learned that the company was overstating the numbers to prospective students, the department and its institutional accreditor, the Council on Occupational Education. As a result, the government decided to withhold aid from three of Medtech’s nine campuses that enroll 750 students. Those three schools received roughly $16 million in Pell grants and federal student loans in the 2014-2015 academic year.

Department officials say the company asked the agency to reconsider its decision, a request that is still under review. The agency is requesting that Medtech set aside more money to cover losses at its remaining locations in Florida, Indiana and Kentucky in the event of their collapse, citing an increased risk to the taxpayer dollars funneled to students attending the schools.

By Oct. 9, Medtech must provide a letter of credit from a bank assuring the availability of about $37 million for those campuses to fully participate in the federal financial aid program, or $18 million for provisional participation. Either option would be a significant increase from the current $9.8 million letter the department has on file for the company.

The Falls Church campus was one of several locations previously placed under a form of oversight known as “heightened cash monitoring.” The department subjects schools to cash monitoring for all sorts of reasons, including operating with a lot of debt, turning in late financial statements or having accreditation problems.

In the past three fiscal years, the department has barred more than 30 schools from receiving federal loans and grants. Marinello Schools of Beauty, for instance, lost access to federal funds in February for illegally requesting federal financial aid for students with invalid high-school diplomas, charging students for excessive overtime and withholding a portion of students’ federal aid. The for-profit chain shut down within days of the department’s decision.

Students who attend an institution that closes may be eligible for a loan discharge and should visit the Department of Education’s website for more information. 

This story has been updated.

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