Thousands of college students across the U.S. suddenly need a new school this Fall as a college chain shuts down.

FOX's Lisa Brady has more: 

Over the past 50 years ITT Tech has grown to more than 130 campuses in 38 states:

(ITT Tech) "Start by calling ITT Technical Institute, we'll send you an informative brochure on tomorrow's careers."

But the operator of the for-profit college chain, under scrutiny for its business practices, was recently banned from enrolling new students who use federal financial aid and now says it will permanently discontinue academic operations, accusing the federal government of a complete disregard for the due process of thousands of students and employees.

But U.S. Education chief John King defends the decision to pursue additional oversight, saying ITT's decisions have put students and millions of dollars of taxpayer funded aid at risk. He says students can try to transfer credits or have their federal student loans forgiven.

Lisa Brady, FOX News.