The United States Education Department will erase more than $500 million in debt for 18,000 students who attended the for-profit college ITT Technical Institute, the department announced Wednesday.
President Joe Biden’s administration approved the effort to forgive loans for students who attended ITT before the chain closed in 2016 after the institute was dealt sanctions by former President Barack Obama’s administration.
The Education Department released a statement saying ITT made “repeated and significant misrepresentations” about its ability to help students find work after graduation between 2005 and the institute’s 2016 closure. Some students reportedly had an even more difficult time finding jobs when they listed ITT on their résumé, according to a readout from the department.
FEDERAL GOVERNMENT STUDENT LOAN LOSSES EXPECTED TO RISE SIGNIFICANTLY DUE TO PANDEMIC-RELIEF EFFORTS
Education Secretary Miguel Cardona said the move “will give thousands of borrowers a fresh start and the relief they deserve.”
“Today’s action is part of the Biden-Harris administration’s continued commitment to stand up for borrowers when their institutions take advantage of them,” Cardona added.
ITT borrowers will be notified about their claim approvals in the coming weeks, according to the Department of Education. There are 100,000 claims still pending review.
Cardona will host a series of additional hearings later this month as the Education Department considers changes to policy that could enhance borrower defense.
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Biden has already quashed liberals’ calls for $50,000 worth of regular student loan relief for current and former students across the nation. However, the president’s administration is looking into ways to cancel $10,000 in debt per person.
Earlier this month, the administration raised its forecasts on losses the federal government will take on student loans by $53 billion due to lower repayment rates following the 2020 pandemic and the temporary student loan relief implemented by former President Donald Trump’s administration.
