Biden Administration Cancels $ 1.1 Billion Student Loan Debt For ITT Tech Students

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On Thursday, the US Department of Education announced it would cancel $ 1.1 billion in outstanding student loans for some students at the now defunct ITT Institute of Technology.

According to Press releaseAnother 115,000 borrowers will see their student loans canceled following a new revision of existing rules.

ITT Technical Institute filed for bankruptcy in September 2016. It has closed 130 campuses across the country, affecting more than 35,000 students and more than 8,000 employees, amid lawsuits and investigations surrounding alleged aggressive recruitment tactics.

“For years, ITT has hidden its true financial situation from borrowers, while at the same time luring many of them to take out private loans on deceptive and unaffordable conditions, which could lead to borrowers dropping out of school,” said the US Secretary of Education. Miguel Cardona in a press release. “Today’s action is a continuation of the Department’s efforts to improve and use its dedicated lending authority to provide meaningful assistance to student borrowers. At the same time, the lingering costs of correcting wrongdoing by ITT and other predatory institutions further underscore the need for stronger and faster accountability across the entire federal bailout system. ”

The number of loan repayments approved by President Joe Biden since January 2021 is $ 9.5 billion, affecting more than 563,000 borrowers.

The department said the majority of borrowers did not receive a degree or a certificate and left ITT on or after March 31, 2008.

The department said that from September they will begin to issue extracts for those who meet the requirements.



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