Loan relief given to American students defrauded by a commerce college



The US Department of Education said Wednesday that it is writing off student debt for thousands of borrowers who have attended a network of commercial colleges that have exaggerated their alumni’s job search success.

The Biden administration has said it is approving 18,000 loan forgiveness applications from former students of the ITT Institute of Technology, a network that closed in 2016 after the Obama administration passed a series of sanctions. Payments on the new loan will help pay off more than $ 500 million in debt.

The move marks a step forward in the Biden administration’s efforts to tackle backlog of claims through a borrower protection program that forgives loans to students who have been defrauded by their colleges. Lawsuits piled up during the Trump administration, which stalled the program and only started processing claims after a federal court demanded it. More than 100,000 claims are currently pending.


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