U.S. Education Department Expands Loan Relief For ITT Tech Student Borrowers
The U.S. Department of Education announced Thursday it is expanding loan forgiveness to 115,000 additional former students of ITT Technical Institute, providing $1.1 billion in loan relief to student borrowers defrauded by the defunct school.
ITT Tech filed bankruptcy and abruptly closed in 2016, and U.S. DOE has already forgiven loans for 18,000 student borrowers it said were misled by the school as it grappled with financial troubles.
Now, the department is extending that relief to students who left the school without completing a degree or credential anytime after March 2008.
U.S. Secretary of Education Miguel Cardona said in a statement the ongoing cost to help student borrowers "highlights the need for stronger and faster accountability throughout the federal financial aid system."
Many students were unable to transfer their credits to other schools, and have struggled to find employment after attending ITT Tech.
The department estimates at least 43 percent of borrowers included in the extension are currently in default on their loans.