ITT Tech students to get $4 billion in federal loan forgiveness: What borrowers should know

In a new piece of news, any student who has borrowed federal funds to take classes at ITT Technical Institute, a large for-profit college that closed in 2016 following government sanctions, could end up with nearly $4 billion in total debt. Is. Is. Around 208,000 borrowers will benefit.

The college has been attended since January 2005 after the college closed in September 2016. Education Secretary Miguel Cardona said the college had misled students about its academic programs.

Cardona said it is time for student borrowers to stop bearing the burden of ITT’s years of lies and false promises, no matter the difficulty of profiting from federal student loan programs.

The education department can repay the debt of students who prove that their colleges took advantage of them. According to a news release by the federal government, borrowers usually have to file for this relief in person through the Borrower Defense Rule.

The first found that ITT Tech misled students about their ability to find a job or transfer their credit to another institution.

On Tuesday, the agency had already forgiven $2 billion in student loan debt of nearly 130,000 students attending college. ITT Tech closed in September 2016 when the government blocked it from accepting new students who are on federal aid.

ITT Tech loan redemption is similar to loan cancellation for students attending Corinthian colleges, in which case the federal government wiped out nearly $6 billion in student loans for about 560,000 borrowers. This relief is focused only on the students participating in ITT Tech.

Biden has said he will finally announce a decision on comprehensive student loan relief and that the federal government under Biden has canceled $32 billion for 1.6 million borrowers.

The action comes as the government withheld payments on federal student loans for the past two and a half years, also set interest rates at zero percent, and collection agencies halted their efforts to recover the loans.

Biden has not yet said whether he will extend the moratorium, although both he and former President Donald Trump have extended the pause several times.

Leave a Comment