The Iowa College Student Aid Commission has instructed a private, for-profit college to cease accepting new enrollment of Iowa students until further notice.
Iowa College Aid, which authorizes post-secondary educational institutions in Iowa, has instructed Vatterott College not to enroll any new Iowa students until the company complies with a federal request for an increased letter of credit. The temporary moratorium applies to the company’s Des Moines location as well as to any online programs offered to Iowa residents.
In December, the U.S. Department of Education required Vatterott to submit an increased Irrevocable Letter of Credit, according to a statement issued May 5 by Iowa College Aid. The requirement was due to Vatterott’s failure to meet financial responsibility standards set for institutions that participate in federal student aid programs. Such letters are issued by a bank guaranteeing payment for goods and services purchased by the one requesting the letter.