300 former CT ITT Tech students have their student loans forgiven

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The Biden administration has forgiven the student loan debt of former students who attended a now closed for-profit college, a move that will provide 300 people in Connecticut with total relief of $5 million.

Education Secretary Miguel Cardona made the announcement on Monday as millions of borrowers across the United States await President Joe Biden’s imminent and far-reaching decision on whether to cancel tens of thousands dollars in student loan debt and whether those loan repayments will resume on September 1. .

Connecticut Attorney General William Tong said he was one of 25 attorneys general who filed a borrower defense request urging the Department of Education to forgive the debt of those who attended ITT Tech , citing “deceptive tactics” used by the school to recruit students.

The federal ruling covers borrowers who attended ITT Tech from January 1, 2005, until the school closed in September 2016. It also includes those who were enrolled in the school but did not submit a defense of borrower, allowing them to request a loan receipt if they have been defrauded. The Education Department previously offloaded loans for 130,000 ITT Tech borrowers.

“Today’s action will provide billions of dollars in relief, including $5 million to 300 borrowers in Connecticut,” Tong said in a statement. “Secretary Cardona has been an aggressive leader in bringing relief to students and holding predatory institutions accountable.”

Beyond Connecticut, Cardona said a total of 208,000 borrowers across the country would get loan discharges of $3.9 billion. He said there is evidence that ITT Tech “engaged in widespread and pervasive misrepresentations regarding students’ ability to obtain employment or transfer credits” as well as lying about accreditation. Associate’s Degree in Nursing.

“Evidence shows that for years, ITT leaders intentionally misled students about the quality of their programs in order to take advantage of federal student loan programs, regardless of the hardship that would cause,” said Cardona, who was the Connecticut Commissioner of Education. department before his nomination to serve in Biden’s cabinet.

To date, the Biden administration has approved nearly $32 billion in student debt relief for about 1.6 million people. In addition to news about ITT Tech on Monday, Cardona said his agency has officially notified DeVry University that it must pay millions of dollars for approved borrower defense claims. He also approved the discharge of loans for people enrolled in a program at the Kaplan Career Institute location in Massachusetts about a decade ago.

But students in Connecticut and across the country expect Biden’s much-awaited announcement on student loan debt in days.

He is reportedly considering forgiveness of around $10,000 in student loan debt for borrowers earning less than $150,000, though he may agree to a different amount — or none. It’s one of Biden’s 2020 presidential campaign pledges, though supporters are calling for a much higher amount of up to $50,000 per borrower.

The president is also expected to decide soon whether to grant another pause on student loan repayments and accrued interest, which are expected to lift at the end of the month. Biden ordered the Department of Education to freeze reimbursements when he took office in early 2021, but extended it a few times due to economic hardship caused by COVID-19.

These announcements will come less than three months after the midterm elections, which could have a profound impact on how Biden governs and what he might spend for the remaining two years of his current term.

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