ITT spokeswoman Nicole Elam said in an email the company has "voluntarily suspended new student enrollment as we assess our options."
U.S. Dept. of Education officials announced the ban Thursday among a series of measures meant to increase financial oversight of the company.
Under the law, to keep financial aid at the maximum amount, students must complete 30 credits by the end of their freshman year and in each additional year.
Five Indiana nursing schools are in danger of losing accreditation due to student's low exam performances.
The Commission for Higher Education has until December to establish the selection process for who gets the scholarship.
The report found Ivy Tech graduation rates are significantly lower than the national average.
The school is the first public school in Indiana to offer a "competency-based" degree.
The Class120 app uses GPS track college students and notify their parents if they aren't in class.
A large increase is anticipated in the number of students taking advantage of the scholarship program over the next two years.
President Obama wants to bring down the cost of community college tuition, and advocates in Indiana are excited about a platform for a national conversation.