Biden administration cancels $1.1 billion student loan debt for ITT Tech students

The US Department of Education announced Thursday that it would cancel $1.1 cardinal successful pupil indebtedness indebtedness for immoderate students from the now-defunct ITT Technical Institute.

According to a press release, an further 115,000 borrowers volition spot their pupil loans canceled aft a caller reappraisal of existing regulations.

ITT Technical Institute filed for bankruptcy successful September 2016. It unopen down 130 campuses nationwide, affecting much than 35,000 students and much than 8,000 employees, amid lawsuits and investigations implicit alleged assertive recruiting tactics.

"For years, ITT hid its existent fiscal authorities from borrowers portion luring galore of them into taking retired backstage loans with misleading and unaffordable presumption that whitethorn person caused borrowers to permission school," said U.S. Secretary of Education Miguel Cardona successful a quality release. "Today's enactment continues the Department's efforts to amended and usage its targeted indebtedness alleviation authorities to present meaningful assistance to pupil borrowers. At the aforesaid time, the continued outgo of addressing the wrongdoing of ITT and different predatory institutions yet again highlights the request for stronger and faster accountability passim the national fiscal assistance system."

The fig of indebtedness discharges approved nether President Joe Biden since January 2021 is $9.5 billion, affecting implicit 563,000 borrowers.

The section said the bulk of the borrowers did not implicit their grade oregon credential and near ITT connected oregon aft March 31, 2008.

The section said they'll statesman processing discharges for those who suffice starting successful September.