Department of Education Cancels ITT Tech Student Loan

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The Department of Education approved 18,000 borrower protection claims for students who attended the now defunct ITT, canceling a total of $ 500 million in student loans.

According to the department, a network of commercial colleges misled students about their possible job prospects after graduation and the ability to transfer loans to other educational institutions. The department found that students who included ITT Tech on their resumes had difficulty finding work, and that credits earned by ITT Tech students were rarely transferred.

This is the latest step taken by the department to offer targeted student loan relief to those who have been defrauded by commercial institutions. In March, Department Authorized $ 1 Billion Debt Cancellation for 72,000 borrowers with previously approved borrower protection requirements who received only partial compensation.

“Today’s action is part of the ongoing commitment of the Biden-Harris administration to protect borrowers when their institutions use them,” Education Minister Miguel Cardona said in a statement. “This work also highlights the need for ongoing accountability so that institutions can never again commit this kind of widespread deception.”

Carrie Wofford, president of Veterans Education Success, an advocacy group that provided the department with evidence to aid in its decision, welcomed his decision. in issue

“So many veterans have come to us and talked about how ITT Tech tricked them and stole their GI bill,” Wofford said. “Their courage – and the courage of several key whistleblowers – have enabled us to provide the Department of Education with the evidence it needs to bring long-awaited justice to these brave students.”

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