Education Department Forgives $4 Billion in ITT Tech Student Loans

The US Department of Education announced on Tuesday that it will cancel nearly $4 billion in federal loans owed by more than 200,000 students who attended an ITT Technical Institute campus from 2005 to 2016, when the company closed its doors.

Tuesday’s action was based on findings by federal and state investigators that the for-profit chain of universities “engaged in widespread and pervasive misrepresentations regarding students’ ability to obtain employment or transfer credits, and lied about programmatic accreditation of ITT’s associate degree in nursing,” the department said in a Press release.

In recent months, the Biden administration has made a concerted effort to forgive large amounts of student loan debt for borrowers who say they were defrauded or misled by the for-profit colleges they attended.

Tens of thousands of former ITT students had already applied for forgiveness of their federal student loans, under “borrower’s defense until repaid” regulations. But Tuesday’s action will apply to all students who borrowed to attend college during the 11-year period.

The move is similar to the department’s action in June to cancel nearly $6 billion in federal student loans for alumni of Corinthian Colleges, another chain of for-profit institutions that closed under the Obama administration. .

The department also told another for-profit educator, DeVry University, that it must reimburse the government at least $24 million for borrower defense claims filed by students who attended from 2008 to 2015. February, the announced department it had already approved more than $71 million in claims against DeVry from 1,800 students, due to the university’s “widespread substantial misrepresentation of its placement rates.”

As the administration continues to wrestle with whether and how to grant general student loan forgiveness, it has forgiven nearly $32 billion in student loans since 2021. That amount includes about $13 billion for defense claims of borrowers, $9.6 billion for utility loans. forgiveness and $9 billion for those who are permanently disabled.

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