Thousands More Former ITT Tech Students Receive Loan Assistance

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For the third time since March, the US Department of Education plans to pay off the loans of thousands of students who attended the ITT, which campuses are located in Arlington Heights, Oak Brook, Orland Park and Springfield.

This commercial network closed in 2016 after a series of sanctions from the Obama administration.

According to the Ministry of Education, recent loan payments will result in the loss of about $ 1.1 billion in debt for about 115,000 borrowers.

“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,” the minister said in a statement. Education USA Miguel Cardona.

“Today’s event continues the department’s efforts to improve and use 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. ”

Lawsuits piled up during the Trump administration, which halted the forgiveness program and only started processing claims after a federal court demanded it.

Cardona said the ITT student loan forgiveness “will give thousands of borrowers a fresh start and the bailout they deserve.”

The move this week follows another round of loan payments in June when the Department of Education repaid nearly $ 500 million in debt for approximately 18,000 students and another $ 1 billion in March for 72,000 borrowers.

After the collapse of Corinthian Colleges Inc. and other besieged commercial colleges, the Obama administration has taken steps to make it easier for students to obtain loans. But the overhaul was canceled by the Trump administration, which later wrote its own rules, making it harder to get aid. Changing the rules, then-Secretary of Education Betsy DeVos said it had become too easy to get forgiven for loans.

According to the Ministry of Education, eligible borrowers will receive a loan forgiveness automatically provided they have not enrolled in another institution within three years of the school closing. Borrowers registered elsewhere may still be eligible, but must first complete an application form available at StudentAid.gov/closedschoolform

The department says it will begin processing payments in September, and borrowers should be notified in the coming weeks.

Contributing: AP

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