Education

Biden Cancels $3.9 Billion Of Student Debt For Students ‘Intentionally Misled’ By ITT Tech

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Reagan Reese Contributor
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The Department of Education (DOE) is relieving $3.9 billion in remaining student loans for students defrauded by ITT Technical Institute (ITT), according to an Aug. 16 press release.

The DOE found that ITT lied to students about the accreditation of the school’s nursing program and misguided students transferring credits or searching for a job, according to the press release. The DOE will relieve 208,000 ITT borrowers who attended the institution from January 2005 to September 2016 when the school permanently closed. (RELATED: A Math Error Cost The Government Nearly $200 Billion On Student Loans. Here’s How)

“It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises,” Miguel Cardona, Secretary of Education, said in a press release. “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.”

The DOE’s investigation examined ITT’s recruitment materials, policies and interactions between the school and prospective students, the release stated. The students affected do not have to apply to be relieved.

A sign asking President Biden to Cancel Student Debt is seen posted on Pennsylvania Ave near the white house staff entrance during a demonstration demanding that President Biden cancel student loan debt in August on July 27, 2022 at the Executive Offices in Washington, DC. (Photo by Jemal Countess/Getty Images for We, The 45 Million)

A sign asking President Biden to Cancel Student Debt is seen posted on Pennsylvania Ave near the white house staff entrance during a demonstration demanding that President Biden cancel student loan debt in August on July 27, 2022 at the Executive Offices in Washington, DC. (Photo by Jemal Countess/Getty Images for We, The 45 Million)

The DOE proposed a plan in July to relieve student debt for students who’s “schools closed or lied to them, who are totally and permanently disabled, and for public service workers who have met their commitments under the Public Service Loan Forgiveness (PSLF) program.”

“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,” Cardona said in a press release.

The DOE referred the Daily Caller News Foundation to their press release when requested for comment.

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