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ITT Tech student loans canceled overview:
- Who: The U.S. Department of Education (DOE) will cancel the student loans of 208,000 borrowers who attended ITT Technical Institute.
- Why: The DOE found ITT Tech engaged in widespread and pervasive misrepresentations, including lying about students’ ability to get jobs.
- Where: The ITT Tech student loans will be forgiven in the United States
The federal student loans of 208,000 people who attended ITT Technical Institute will be canceled, the government announced.
On Aug. 16, the U.S. Department of Education (DOE) said it will cancel all remaining federal student debt taken on by borrowers who were defrauded by ITT Technical Institute since 2005, delivering $3.9 billion in student loan debt relief, CNBC reports.
The decision comes six years after ITT Educational Services, at one point one of the largest operators of for-profit technical schools in the country, was shut down in 2016.
The Education Department found that ITT Tech engaged in widespread and pervasive misrepresentations in its marketing, including lying about students’ ability to get a job or transfer credits.
“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,” U.S. Secretary of Education Miguel Cardona says in a statement.
“The Biden-Harris Administration will continue to stand up for borrowers who’ve been cheated by their colleges, while working to strengthen oversight and enforcement to protect today’s students from similar deception and abuse.”
ITT Tech student loans to be canceled for students attending school 2005-2016
Some former ITT Tech students were already eligible for debt cancellation, but now the department will automatically cancel all remaining federal student loan debt that borrowers took on to attend the school from January 1, 2005, through its closure in September 2016, CNN reports.
Former ITT Tech students with federal student loans are eligible for the cancellation even if they have not previously applied for relief under the Department of Education’s borrower defense to repayment program. There may be some former ITT Tech students with outstanding debt who are not eligible because they attended the school prior to January 2005.
Meanwhile, a class action settlement that will cancel the student loan debt of around 200,000 students whose had been stalled with the Department of Education has received preliminary court approval. Upon final court approval, at least $6 billion in federal student loans will be canceled.
This comes as one of the country’s largest student loan companies, Navient, recently inked a $1.85 billion deal to settle claims it preyed on students to write loans that saddled them with crushing debt that was near-impossible to pay off.
What do you think about the government’s efforts to cancel some student loan debts? Let us know your thoughts in the comments!
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23 thoughts onITT Tech student loans worth $3.9 billion to be canceled
My son Jerry started at ITT in 2005. He attended until 2006. We moved to SC so he dropped out but didn’t return until 2008. He graduated in 2010. When he returned there in 2008 they did not recognize any of his former classes. I started paying on his loans in 2011. I paid First Associates, Navient, Wells Fargo and Great Lakes until 2019 and finally took a private loan to get a better rate. That loan was thru Ernest Student Loans. Just recently my son paid the final$10,000 off. His Associate degree in Computer Networking cost at least $40,000. Not sure what we paid that first year but I have kept all my records and communications from them all. Any chance some of that money can be reimbursed?
Please add Me
Please add my name
Former student of ITT Tech
2007-2009 – just made it in time to consolidate my commercial loans.
I believe that there should be another class action lawsuit against Navient.
My private loans will not be forgiven.
Please add my name to the list as well.
I also did a Borrower’s Defense to repayment application (hard copy)
I did certified mail with the post office- My package was delivered on May31, 2022.
and they told me that they haven’t received it, So then I used my tracking number to track my package. It was sent to the correct P.O. Box they tell you to send it to (their P.O Box.)
And the Carrier reports that the PO Box is filled to its capacity some they are placing the mail into parcel lockers.
It’s been 17/18 weeks and nothing.
So to me they are just letting mail sit.
Delaying the processing of applications- so time can run out.
What about a students’ (son-in-law) father-in-law and mother in-law who each signed a student loan form. Daughter divorced him and he disappeared after forging my name to more loan forms. The loans were sold to several different institutions until we refinanced with a credit union for $50,000. To say the least….this continues to be a NIGHTMARE.
The loan company is still saying I owe them 30,000. I went to Itt right before they shut down. I got my diploma 2 weeks before hand
same here all my debts are still on there I applied to have them forgiven via usps but they never replied back these prevent me from having any good credit no hope for buying a house car ect. quality of things i would have been able to do since attending have not been fair to me or my family since attending this fraud college it was a lot of work nine of my credits were transferable what a waste of time effort and gas $ all for nothing but the hugest college debt that latterly got me nowhere
Please add me
Please add me
Please add me. I attended that school and would appreciate being refunded.
Also, I believe in student loan forgiveness, but I believe it should be the schools who should have to pay back their students, not the taxpayers. If you cannot teach students basic math, then you should not be an accredited school.
What about the private loans? I hear all about the federal loans being forgiven but no talk about the private loans.
I do not think it’s fair that people who didn’t go to college as they couldn’t afford it will now have to pay for college depts with the there taxes. They need to have better college resources in HS to help kids figure out what is there best options. It’s not about what you want to be but what jobs pay what money. Trade education needs to be a bigger priority moving forward. Also they can get all necessary college courses done in 3 yrs if they take out silly electives like glass blowing which my daughter took for 2 yrs. Students need to pay there loans, the interest should not be paid first, it should be incorporated so the sooner they pay it off the less interest is paid. The government’s loans can decrease the interest rate to help students loans be cheaper.also why are we increasing educational requirements for careers that it’s not necessary. I was. RN I took a 3 yr diploma school. Unfortunately I didn’t get any college credits back then. Even though we could perform far superior to 4 yr college BSN. Who came our of school with no hands on experience. They didn’t grandfather clause the 3 yr diploma grads in regardless of how long they worked as a nurse. Now they want regular RN floor nurses to get a master’s or PhD..why does a floor nurse need these..answer they don’t. It’s just continues to saddle over inflated college costs on middle age people. Just like a 3 yr diploma who worked 25 yrs having to get a 4 yr BSN. The same for 1st grade teacher needing the same now that they have a 4 yr college degree. If people go on to advance positions in those career fields that these further educational studies are needed fine but to just add them on to all different career fields is ridiculous and I’d like to know who makes these decisions. Anyways kids need to see what fields make money and what fields will be taken over by robotics. They also need to learn to pay for decisions they make. You may have made a mistake but you still have to learn to pay for what you chose. I might buy shoes then when it’s to late I find they cause sores on my feet. It’s not fair but I still have to pay for them even though I really can’t use them
Well this is the same thing. It’s part of becoming a adult. Some things aren’t fair in life but if it’s your decision and choice then you have to pay for the service
If it makes you feel any better all the forgiven money is taxable… so at least I have to pay taxes on it