Loan relief granted to defrauded for-profit college students

Posted at 10:51 AM, Jun 16, 2021
and last updated 2021-06-16 10:51:04-04

WASHINGTON — The U.S. Education Department says it's erasing student debt for thousands of borrowers who attended a for-profit college chain that exaggerated its graduates’ success in finding jobs.

The Biden administration is approving 18,000 loan forgiveness claims from former students of ITT Technical Institute, which closed in 2016. The loan discharges will clear more than $500 million in debt.

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The move announced Wednesday marks a step forward in the Biden administration’s effort to clear a backlog of claims in a program providing loan forgiveness to students defrauded by their colleges.

Many students said it was harder to find jobs when they listed ITT Tech on their resumes. Borrower advocates applauded the loan forgiveness move.

“Our action today will give thousands of borrowers a fresh start and the relief they deserve,” Cardona said in a 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.”