Story at a glance
- The Department of Education announced Wednesday that it is forgiving the student loan debt for thousands of students who attended a for-profit college that allegedly embellished the employment success of its alumni.
- The Biden administration said that 18,000 former ITT Technical Institute students will have 100 percent of their loans relieved.
- “Our action today will give thousands of borrowers a fresh start and the relief they deserve after ITT repeatedly lied to them,” Education Secretary Miguel Cardona said in a press release.
The Department of Education (DOE) announced Wednesday that it is forgiving the student loan debt for thousands of students who attended a for-profit college that allegedly embellished the employment success of its alumni.
The Biden administration said that 18,000 former ITT Technical Institute students will have 100 percent of their loans relieved, which totals nearly $500 million.
“Our action today will give thousands of borrowers a fresh start and the relief they deserve after ITT repeatedly lied to them,” Education Secretary Miguel Cardona said in a press release.
“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,” Cardona continued. “This work also emphasizes the need for ongoing accountability so that institutions will never be able to commit this kind of widespread deception again.”
America is changing faster than ever! Add Changing America to your Facebook or Twitter feed to stay on top of the news.
An Education Department review discovered that ITT made “repeated and significant misrepresentations” regarding students’ post graduate job prospects and future earning potential. The investigation also found that course credits earned at ITT were difficult to transfer to other academic institutions. The for-profit college shut its doors in 2016.
“It appears the Biden administration genuinely wants to help people who are owed discharges,” Alex Elson, vice president of Student Defense, told The Associated Press. “But that makes it all the more confounding that they are so hesitant to use their authority to immediately and automatically help the countless additional borrowers who are still waiting.”
The agency announced a plan in March that would forgive $1 billion in unpaid loans for an estimated 72,000 borrowers who had previously proven they were defrauded by an academic entity.
American borrowers collectively owe more than $1.7 trillion in student loans.
READ MORE STORIES FROM CHANGING AMERICA
TV STARS CHIP AND JOANNA GAINES DONATE TO CAMPAIGN AGAINST CRITICAL RACE THEORY IN SCHOOLS
BIDEN STILL CONSIDERING CANCELLATION OF AS MUCH AS $50K PER PERSON IN STUDENT DEBT
US SECRETARY OF EDUCATION CANCELS $1B OF STUDENT LOAN DEBT
ACCORDING TO CDC, 96 PERCENT OF SCHOOLCHILDREN STILL UNSAFE FOR FULL-TIME, IN-PERSON LEARNING
COLLEGE STUDENTS ARE REEVALUATING THEIR PLANS IN A POST-COVID WORLD
changing america copyright.
