Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. forgives $3.9 billion in federal loans for ITT Tech students

Published 08/16/2022, 11:02 AM
Updated 08/16/2022, 11:25 AM
© Reuters. FILE PHOTO: U.S. Secretary of Education Miguel Cardona meets leaders from U.S. colleges and universities to discuss challenges students are facing after the Supreme Court decision to end the nationwide constitutional right to abortion, in the Vice President's ceremonial office at the Eisenhower Executive Office Building in Washington, U.S., August 8, 2022. REUTERS/Evelyn Hockstein

© Reuters. FILE PHOTO: U.S. Secretary of Education Miguel Cardona meets leaders from U.S. colleges and universities to discuss challenges students are facing after the Supreme Court decision to end the nationwide constitutional right to abortion, in the Vice President's ceremonial office at the Eisenhower Executive Office Building in Washington, U.S., August 8, 2022. REUTERS/Evelyn Hockstein

WASHINGTON (Reuters) - Former students of ITT (NYSE:ITT) Technical Institute will not have to pay $3.9 billion they still owe in federal student loans to the now-defunct for-profit college, the U.S. Department of Education said on Tuesday.

ITT Educational Services Inc, which ran ITT Technical Institute, closed its roughly 130 campuses and filed for bankruptcy in Sept. 2016, amid growing regulatory scrutiny of for-profit colleges' recruiting and financing practices.

The loan forgiveness will cancel student debt for 208,000 borrowers, the department said in a statement. "It is time for student borrowers to stop shouldering the burden from ITT's years of lies," Secretary of Education Miguel Cardona said.

The department also said it had formally notified DeVry University that the for-profit school is required to pay $24 million in approved borrower defense claims. The department said DeVry had misled prospective students about graduates' employment prospects, a charge the school has denied.

© Reuters. FILE PHOTO: U.S. Secretary of Education Miguel Cardona meets leaders from U.S. colleges and universities to discuss challenges students are facing after the Supreme Court decision to end the nationwide constitutional right to abortion, in the Vice President's ceremonial office at the Eisenhower Executive Office Building in Washington, U.S., August 8, 2022. REUTERS/Evelyn Hockstein

Student debt cancellation has become a priority for many liberals and one that could shore up popularity with younger and more highly educated voters, who lean Democratic, before November's midterm congressional elections.

Last month, President Joe Biden said the government would cancel $6 billion in student loans for 200,000 borrowers who claimed they were defrauded by their colleges.

Latest comments

:d it is known as steeling the things that u do in America....do u now that?!?!?
Washington right on top of things as usual. Pathetic
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.