The Department of Education has written off over $ 9 billion in student loan debt since President BidenJoe BidenUS evacuates all Afghan embassy staff: report Biden visits FEMA headquarters during Ida’s attack on New Orleans Romney: the crisis in Afghanistan is the fault of the Biden and Trump administration MORE took office with relocations that will affect more than 563,000 borrowers.
Agency confirmed new revenue figure recent announcement detailing a $ 1.1 billion debt write-off for 115,000 borrowers who attended the ITT, which currently does not exist.
The department said that borrowers receiving assistance attended ITT at a time when the institution was distorting its finances and misleading students about “unaffordable private loans that were supposedly issued for a grant.”
“ITT’s criminal actions have diverted its financial resources from educating students to keep the school running for many years than it otherwise might have, resulting in the repayment of debts that are paid from today,” the agency said in a statement.
Secretary for Education Miguel CardonaMiguel CardonaHill’s Morning Report – Posted on Facebook – Biden continues to fight chaos in Afghanistan Cardona Says Civil Rights Checks May Be Started Due To School Mask Ban Sunday Preview: Chaos In Kabul Hinders US Evacuation MORE ITT, which finally closed in 2016, said it “hid its true financial situation from borrowers for years,” “luring many of them to take out private loans on deceptive and unaffordable terms, which could have caused borrowers to abandon study “.
Cardona extended the relief period until March 31, 2008, following an agency review of the events leading to the institution’s closure, filing with the SEC and bankruptcy proceedings.
The agency said this is the date that company executives “publicly disclosed the beginning of a financial scheme that set in motion a series of distortions to obscure the true nature of the school’s finances following the public loss of external funding.”
The office said it provides automatic assistance to eligible borrowers who attended any institution that closed between November 1, 2013 and July 1, 2020, and did not go to another institution within three years after the school closed.
Previously, borrowers who were ITT students in their last four months of employment received automatic benefits in 2019.
Cardona said the agency’s recent decision to write off more than $ 1 billion in debt to former ITT students continues the agency’s commitment to “improving and using targeted loan assistance agencies to provide meaningful assistance to student borrowers.”
“At the same time, the continuing cost of correcting violations by ITT and other predatory institutions further underscores the need for stronger and faster accountability across the entire federal financial aid system,” he said.
An ad came from the office days after The Biden administration announced plans to write off $ 5.8 billion in federal student loans to more than 323,000 borrowers who were identified by the Social Security Administration as permanently and permanently disabled.
News comes as progressives increased pressure on Biden to step up efforts to cancel larger student loan debt for borrowers as the government preparing to finish the current pause in the payment of federal student loans.
Moratorium on student debt payments allowed more than 43 million borrowers across the country were able to temporarily suspend payments amid the ongoing pandemic.
But for now, borrowers still have to resume paying off more than $ 1.6 trillion in debt to the federal government when the moratorium expires. in the end of January…
Updated at 11:12