Biden Administration Forgives $1.1 Billion in Student Loans for 115,000 Borrowers

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The U.S. Department of Education announced Thursday that 151,000 borrowers who attended ITT Technical Institute have been approved for the cancellation of $1.1 billion in student loans. These borrowers, who left the school after March 31, 2008, will have 100% of their loans forgiven.

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“Today’s action continues the Department’s efforts to improve and use its targeted loan relief authorities to deliver meaningful help to student borrowers,” U.S. Secretary of Education Miguel Cardona, in a statement.

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.

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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.

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To date, this brings the total loan cancellation under the Biden-Harris administration to $9.5 billion for 563,000 borrowers, according to CNBC.

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Last updated: August 27, 2021

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

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