In August 2016, the U.S. Department of Education prohibited ITT Educational Services from enrolling new students who used federal financial aid, because accreditor ACICS threatened to revoke accreditation for the 130 other schools that it ran. The school suspended new enrollment, then on September 6, ceased operations. The 2016-17 academic year at Daniel Webster was not threatened because it used a different accreditor, the New England Association of Schools and Colleges (NEASC). However, the NEASC said the Department of Education's "extraordinary demands" implied that the college did not meet its standards either, and required the college to show why its NEASC accreditation should not be withdrawn as well. Daniel Webster agreed to submit such a report, but by September 9, the federal government refused to release financial aid for Daniel Webster students. Daniel Webster College, Inc. and the parent corporation filed for bankruptcy on September 16.