The Department of Education on Wednesday erased more than $500 million in federal student loans, canceling debt for 18,000 applications who attended ITT Tech, a defunct for-profit chain that ceased operations in 2016.
“Today’s action is part of the Biden-Harris Administration’s continued commitment to stand up for borrowers when their institutions take advantage of them," Education Secretary Miguel Cardona said in a statement.
The move is a continuation of “targeted loan relief” the DOE started in March. The Biden administration had canceled $1 billion of student debt for 72,000 borrowers who already had their claims approved by way of "borrower defense to loan repayment forgiveness." Those who are eligible have their loans forgiven if their school either misled them or engaged in misconduct.
The deception by ITT ran deep. ITT had to shutter 130 campuses and faced a bevy of lawsuits. ITT Tech deceived their students, who were under the false impression that their credits could transfer to other creditable colleges.
The school reportedly eliminated entrance exams and admissions screening for some programs. Graduates found themselves saddled with more debt than the school estimated.
“Our action today will give thousands of borrowers a fresh start and the relief they deserve after ITT repeatedly lied to them," Cardona said.
The Biden administration is erasing student debt for thousands of borrowers who attended the for-profit college chain ITT Technical Institute.
The new loan discharge will clear over $500 million in debt.https://t.co/8rccdFyPmz
— NPR (@NPR)
