The Department of Education provides discharges from closed schools for 115,000 borrowers who attended the now defunct ITT, canceling more than $ 1.1 billion in student loans.
On Thursday, the department said that the decision was made on the basis of “a new review of the problems that led to the closure of ITT.” This affects those borrowers who did not complete an advanced degree and left ITT Tech on or after March 31, 2008, when the commercial institution began to publicly disclose the origin of a financial scheme that distorted its finances.
The agency estimates that about 43 percent of borrowers who receive royalties from closed schools are currently not paying back their loans.
“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 borrowers to drop out,” said Education Minister Miguel Cardona. in issue… “Today’s event continues the Department’s efforts to improve and use its dedicated lending authority to provide meaningful assistance to student borrowers.”
In June, the department canceled $ 500 million loans for ITT Tech students who said they were cheated by the institution. About 7,000 closed school borrowers also approved the borrower’s protection from claims for repayment.
The Biden administration has written off $ 9.5 billion in student loans since the beginning of the year.