Department Of Education Erases $500 Million In Student Loans

(Nicholas Kamm/AFP via Getty Images)

Lacey Kestecher Contributor
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The Department of Education (DOE) will forgive $500 million in loans for 18,000 student attendees of ITT Technical Institute (ITT), it was announced Wednesday.

From 2005 to 2016, ITT repeatedly “misled” its students about their expected earnings, potential jobs post-graduation, and their ability to transfer credits, the DOE’s press release said. Students had reported that ITT’s listing on their resumes hindered their job search.

“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,” Secretary of Education Miguel Cardona said in the statement. “Many of these borrowers have waited a long time for relief, and we need to work swiftly to render decisions for those whose claims are still pending.” (RELATED: Former JPMorgan Exec Warns Of $500 Billion Hole In Student Loan Debt, Government Efforts To Mask Damage)

Under President Joe Biden 90,000 individuals have had their loans discharged, a combined total of $1.5 billion in loan forgiveness, according to the press release.

The Borrower Defense to Repayment program will manage the loan discharges according to Forbes. Due to changes to this program by Cardona, former ITT students will have the total amount of their loans forgiven.
In the following weeks, students will be notified of their eligibility for loan forgiveness from ITT. The DOE will then forgive nearly $500 million in loans.