The feds will forgive loans to students who studied at the defunct ITT



Washington. The federal government agreed to forgive more than $ 1.1 billion in loans to 115,000 students who attended defunct technical institute ITT, a business school with a campus in Liverpool.

The US Department of Education announced today that it will forgive federal loans to student borrowers who did not receive a diploma or matriculation and left ITT on or after March 31, 2008.

ITT closed its campuses nationwide in 2016, leaving tens of thousands of students in 28 states, including the New York City campuses in Liverpool, Albany and Erie County.

The bankrupt school “hid 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 that could lead to borrowers dropping out of school,” US Education Secretary Miguel Cardona said today. …

Cardona said 43 percent of borrowers affected by today’s decision do not currently have their loans.

The Ministry of Education will begin to forgive loans next month. The department said that most borrowers will not need to apply and their loans will be automatically forgiven.

Only those students who enrolled in other schools after leaving ITT but did not complete their curriculum will be required to apply for loan forgiveness… These applications can be submitted through a lending institution or directly through Department of Education website

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