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Department of Education cancels nearly $4 billion in student loans

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On Tuesday, August 16, the U.S. Department of Education issued a press release announcing its intention to forgive all federal student loans borrowers received to attend the ITT Technical Institute from January 1, 2005 through its September 2016 closure. issued a release. One billion loans have been fully forgiven among 208,000 borrowers. This is the second largest targeted debt relief action the Biden-Harris administration has taken against borrowers who have been scammed, and her 560,000 Corinthian former attendees at his college. It’s second only to $5.8 billion in loan cancellations.

Eligible borrowers, including those who have not applied for debt forgiveness defense, will have their debts canceled without further action on their part. The education department’s decision was based on ITT’s internal policies and findings based on records. Testimonials from former students, employees, and administrators. ITT recruiting materials and brochures. Records of ITT representatives communicating with prospective students. Research files and submissions collected by congressional investigators and state attorneys general offices. An individual borrower defense application submitted by a former ITT student.

important point

  • The U.S. Department of Education announced $3.9 billion in federal student loans to 208,000 borrowers who attended the ITT Technical Institute from January 1, 2005 until its September 2016 closure.
  • The Biden-Harris administration and the Consumer Financial Protection Bureau (CFPB) have each taken action against the ITT for misleading students and pressuring borrowers to take out large private loans.
  • The Department of Education has also taken action against two other for-profit organizations, DeVry University and the Kaplan Career Institute.

The Department of Education’s announcement comes ahead of the suspension of student loan repayments, interest, and collections that expire at the end of the month.

ITT Federal Review History

This isn’t the first time the Biden-Harris administration has taken action against the ITT, which previously approved a $1.9 billion dismissal of 130,000 students. In addition to lying about the accreditation of ITT’s Associate in Nursing degree program, ITT allegedly misrepresented the for-profit institution’s ability to find employment and transfer credits to other schools. It was already under scrutiny thanks to the findings of the borrower defense.

The Consumer Financial Protection Bureau (CFPB) is also working to protect ITT borrowers, resulting in the cancellation of $498 million in private student loans. The CFPB claimed that he sued ITT in 2014 and pressured students to take out large private loans, even though he knew most students would default. Five years later, the CFPB issued a ruling barring ITT from offering or providing student loans. The CFPB also entered judgment against other parties who provided assistance to ITT in violation of the Consumer Financial Protection Act by owning and controlling private college student loans.

In addition to the CFPB, the Department of Education has received significant support from half of the nation’s attorneys general’ offices, led by the Attorneys General of Colorado and Oregon and supported by evidence from the Attorneys General of Iowa and New Mexico. I have received the proof. Its findings were also supported by significant and extensive work by Veterans Education Success.

Other Institutions Covered by the Department of Education

Alongside ITT, the Department of Education has also formally notified DeVry University that it is responsible for approximately $24 million in legal claims for approved borrowers. The Department of Education stated that from 2008 to 2015, DeVry found that 90% of his graduates actively seeking employment were within six months of graduating, despite an actual employment rate of about 58%. claimed to have found a job in his field of study. The Department of Education expects the number of approved discharge amounts to increase as it continues to award additional applications from former DeVry students.

Additionally, approximately 100 Kaplan Career Institute attendees have been approved for discharge. The Massachusetts Attorney General has provided evidence to the Department of Education that proves Kaplan reported a job placement rate of over 70% for him when the actual figure was as low as 25% for him. The Massachusetts Attorney General also found that Kaplan did not provide promised career his services to borrowers.