The U.S. Department of Education will extend $1.1 billion in closed school discharges to an additional 115,000 borrowers who went to the now-defunct ITT Technical Institute (ITT). Such borrowers did not finish their degree or credential and left the Institute on or after March 31, 2008. About 43 percent of these borrowers are estimated to be in default, according to the Department.
This latest relief impacts borrowers who attended ITT when the institution misrepresented its financial status while misleading students into taking unaffordable private loans allegedly portrayed as grant aid.
The total amount of loan discharges from the Department since January 2021 comes to $9.5 billion, impacting more than 563,000 borrowers.
"For years, ITT hid its true financial state from borrowers while luring many of them into taking out private loans with misleading and unaffordable terms that may have caused borrowers to leave school," said U.S. Secretary of Education Dr. Miguel Cardona. "Today's action continues the Department's efforts to improve and use its targeted loan relief authorities to deliver meaningful help to student borrowers. At the same time, the continued cost of addressing the wrongdoing of ITT and other predatory institutions yet again highlights the need for stronger and faster accountability throughout the federal financial aid system."