Earlier today, the Department of Education announced they forgave over $500 million in federal student loan debt for 18 thousand borrowers who attended ITT Technical Institute.
Here’s what you need to know.
1. What is ITT Tech
Before closing in 2016, ITT Tech had operated for 50 years as a trade school. It shut down operations while being investigated by more than a dozen state attorneys general and two federal agencies for alleged fraud, deceptive marketing or steering students into predatory loans. The school later filed for bankruptcy protection to liquidate its business.
2. Why loans are being forgiven
The Department of Education decided to extend loan forgiveness to former ITT Tech students for two reasons.
First, the Department found that ITT Tech made repeated and significant misrepresentations to students related to how much they could expect to earn and the jobs they could obtain after graduation between 2005 and the institution’s closure in 2016.
Second, the Department found that ITT Tech misled students about the ability to transfer their credits to other institutions from January 2007 through October 2014. In reality, students were rarely able to transfer credits. Consequently, students made little to no progress along their educational journey, yet they were saddled with student loan debt from their time at ITT.
3. Who’s eligible:
Initially, loan forgiveness was expected to be limited to students who attend ITT Tech campuses in California. Under the Biden Administration, forgiveness will be extended to ITT Tech students no matter which campus location they attended.
4. When will loans be forgiven
The Department of Education will begin forgiving eligible student loan debt over the next several weeks.
5. What to do
At this time, if you believe you’re eligible for loan forgiveness because you attended ITT Tech, there’s nothing you need to do. The Department of Education will notify eligible borrowers over the next few weeks.
Read more at: https://www.tateesq.com/learn/itt-tech-student-loan-forgiveness
Apply for Borrower Defense to Repayment: https://studentaid.gov/borrower-defense/
Schedule free 10-minute phone call: https://www.tateesq.com/free-talk