Former ITT Tech students get $3.9 billion in loan debt cancellation
After Federal officials accused ITT Technical Institute U.S. of using deceptive recruiting tactics and misleading students about its ability to help graduates find high-paying jobs, loan debt for students who attended the school is being wiped out.
U.S. Department of Education officials announced last week that they will erase about $3.9 billion in loan debt for students who attended the defunct school between January 2005 through its closure in September 2016. When it shuttered its doors, the for-profit school had four campuses in metro Atlanta and about 40,000 students nationwide. It is estimated that about 208,000 borrowers will receive full loan discharges.
U.S. Secretary of Education Miguel Cardona said in a statement, “It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises. The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause.”