$4 Billion in Student Loans Were Just Canceled. Here’s Who’s Affected
More student loan relief is coming for over 200,000 borrowers.
The U.S. Department of Education announced last week that it is canceling the remaining student loan debt taken on by students who attended ITT Technical Institute since 2005.
The canceled debt amounts to nearly $4 billion for 208,000 borrowers.
Much like other recent student loan fraud cancellations, ITT Tech widely and pervasively misrepresented students’ future job options and the ability to transfer credits, according to DOE.
“It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises,” said U.S. Secretary of Education Miguel Cardona. “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.”
This is just the latest round of relief for former ITT students who also had loans forgiven through a lawsuit settlement earlier this year. To date, more than $5.8 billion in loans has been discharged for around 338,000 borrowers who attended ITT.
Overall, the Biden Administration has now provided nearly $32 billion in loan relief for 1.6 million borrowers. The total debt cancellations include $13 billion related to institutions that took advantage of borrowers.
Robert Bruce is a senior writer for The Penny Hoarder.