Biden Forgives $500 Million in Student Loans for 18,000 Borrowers
The U.S. Department of Education announced Wednesday that 18,000 borrowers who attended ITT Technical Institute have been approved for the cancellation of $500 million in student loans. These borrowers will have 100% of their loans forgiven.
“Our action today will give thousands of borrowers a fresh start and the relief they deserve after ITT repeatedly lied to them,” said Education Secretary Miguel Cardona. “Today’s action is part of the Biden-Harris Administration’s continued commitment to stand up for borrowers when their institutions take advantage of them.”
Former students claimed that ITT made repeated misrepresentations regarding how much students could expect to earn and the jobs they could obtain after graduation between 2005 and 2016. The Department also found that ITT misled students about their ability to transfer credits to other institutions from January 2007 to October 2014. Credits rarely transferred and the educational journey of borrowers was stinted despite taking on student loan debt.
Read More: 21 Budgeting Tips for College Students
ITT was shut down in 2016 after the U.S. government banned the institution from enrolling students receiving federal aid, reports The Wall Street Journal.
The evidence against ITT was made possible due to investigations by partners at the Consumer Financial Protection Bureau and the Iowa Office of the Attorney General, as well as Veterans Education Success. The Department stated that borrowers will be notified in the coming weeks.
To date, this brings the total loan cancellation under the Biden-Harris administration to $1.5 billion for 90,000 borrowers, according to the Department of Education. The Biden administration is aiming to address America’s crisis in student loans, reports the WSJ, with roughly $1.6 trillion in outstanding debt as of March 31.
More From GOBankingRates:
- Jaw-Dropping Stats About the State of Retirement in America
- How To Keep Your Financial Planning On Track in 2021
- 20 Home Renovations That Will Hurt Your Home’s Value
- 27 Things You Should Never Do With Your Money
Last updated: June 16, 2021