Department of Education Forgives $3.9 Billion in Student Loans for ITT Tech
The Chantilly campus of the ITT Technical Institute is closed and empty on September 6, 2016 in Chantilly, Virginia.
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The U.S. Department of Education announced Tuesday that it will forgive all remaining federal student debt incurred by borrowers defrauded by the ITT Technical Institute since 2005, offering $3.9 billion in relief to some 208,000 people.
ITT Educational Services was at one time one of the largest for-profit technical school operators in the United States and closed in 2016. Borrowers should not have to apply for the relief, the department said. education.
The Department of Education found that ITT Tech engaged in widespread and pervasive misrepresentation, including lying about students’ ability to obtain employment or transfer credits.
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“Evidence shows that for years, ITT executives intentionally misled students about the quality of their programs in order to take advantage of federal student loan programs, regardless of the hardship that would entail,” the U.S. Secretary said. to Education, Miguel Cardona, in a statement.
“The Biden-Harris administration will continue to stand up for borrowers who have been deceived by their colleges, while working to strengthen oversight and enforcement to protect today’s students from similar deception and abuse.” , Cardona added.
To date, the Biden-Harris administration has approved the cancellation of nearly $32 billion in student loans for 1.6 million borrowers.
“President Biden continues to use existing statutory authority to write off more student loan debt than any previous president,” said higher education expert Mark Kantrowitz.
Yet the White House is currently under intense pressure to cancel student debt for all borrowers, and President Joe Biden has promised to make a decision on how, if so, to act by the end of the month.