Students who used federal loans to attend ITT Technical Institute as far back as 2005 will automatically get that debt canceled after authorities found “widespread and pervasive misrepresentations” at the defunct for-profit college chain.
Michael Kitchen, an editor with Lending Tree's Student Loan Hero blog, discusses the student loan forgiveness changes announced by the Dept. of Education on April 19, 2022.Students who used federal loans to attend ITT Technical Institute as far back as 2005 will automatically get that debt canceled after authorities found "widespread and pervasive misrepresentations" at the defunct for-profit college chain, the Biden administration announced Tuesday.
It adds to the administration's growing list of piecemeal student debt cancellations — a similar action in June promised to erase $5.8 billion in debt related to Corinthian Colleges — but it provided no answers on broader student debt cancellation. At its height, ITT was among the largest for-profit college chains in the nation, with 130 campuses across 38 states. The company abruptly shut down after facing heavy sanctions from the Education Department amid accusations that the company pushed students into risky loans and misled them about the quality of academic programs.The Education Department has previously approved the cancellation of $1.
"ITT defrauded hundreds of thousands of students," said Richard Cordray, chief of Federal Student Aid, the federal office that oversees student loans. "By delivering the loan relief students deserve, we are giving them the opportunity to resume their educational journey without the unfair burden of student debt they are carrying from a dishonest institution."The decision drew applause from groups that represent students.
"It was all for a degree that no one takes seriously. Whenever I told employers where I attended college, I was shown the door," said Berkhalter, of Lima, Ohio.
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