More than $500 million in student loan relief was granted to 18,000 people.
According to the Associated Press, the US Department of Education announced Wednesday that it will forgive student loan debt for 18,000 former students of ITT Technical Institute, a for-profit college company that shuttered during the Obama administration.
The Biden administration allowed the cancellation of debts totaling more than $500 million. ITT Tech made “repeated and serious misrepresentations” about its ability to assist students get jobs, according to the Education Department, and deceived students about its ability to transfer course credit to other universities.
In actuality, students complained that having ITT Tech on their resume made it more difficult to get work, and that credits were rarely accepted by other universities.
In a statement, Education Secretary Miguel Cardona stated, “Our action today will provide thousands of borrowers a fresh start and the relief they deserve.” “Many of these borrowers have been waiting for relief for a long time, and we need to make decisions quickly for those whose cases are still pending.”
See the list below for more Associated Press reporting.
The decision is a step forward in the Biden administration’s efforts to clear a backlog of claims in the borrower defense program, which offers loan forgiveness to students who have been deceived by their universities.
During the Trump administration, claims piled up, and the program was halted, with claims only being processed after a federal judge ordered it. There are now over 100,000 claims outstanding.
It comes after the Education Department released another wave of loan discharges in March, clearing $1 billion in federal student debt for 72,000 borrowers. Former students of for-profit institutions made all of these assertions.
The Biden administration is overhauling many education programs as part of its effort to reverse Trump-era initiatives. Borrower defense is one of them. This month, Cardona is hosting a series of hearings as his agency explores revisions to that and other policies.
Until 2015, when the Education Department received hundreds of claims from former Corinthian Colleges students, the program was rarely used. Following allegations that it deceived to students about job placement statistics, the for-profit college business was recently shut down.
Following the demise of Corinthian Colleges and other troubled for-profit colleges, the Obama administration took steps to make it simpler for students to have their loans forgiven. The makeover, however, was undone by the. This is a condensed version of the information.