Education sector cancels $4 billion in ITT Tech student loans
The U.S. Department of Education announced Tuesday it will cancel nearly $4 billion in federal loans owed to more than 200,000 students who attended the ITT Technical Institute campus from 2005 to 2016, when the company closed.
Tuesday’s action found a series of for-profit universities “engaging in widespread misrepresentation related to students’ ability to get jobs or earn credits, and lie about the ITT’s associate’s degree program accreditation.” It was based on findings by federal and state investigators that in nursing,” the department said in a news release.
In recent months, the Biden administration has made a concerted effort to cancel large amounts of student loan debt for borrowers who claim they were defrauded or misled by the for-profit colleges they attended. .
Tens of thousands of former ITT students had applied for federal student loan forgiveness under the “Borrower’s Defense Against Repayment” rule. However, Tuesday’s measure applies to all students who have borrowed to attend college for 11 years.
The move is similar to the department’s June action to cancel about $6 billion in federal student loans to former students at Corinthian University, another chain of for-profit institutions that was shut down during the Obama administration.
The department also notified DeVry University, another for-profit educational institution, that it must repay the government at least $24 million in borrower defense claims filed by students who attended from 2008 to 2015. Did. Her $71 million claim against DeVry from 1,800 students is due to the university’s “widespread misrepresentation of employment rates.”
The government continues to wrestle over whether and how to offer block forgiveness for student loans, but has canceled about $32 billion in student loans from 2021 onwards. Forgive, $9 billion for permanently disabled people.