The download of the extended closed school will Provide 115K borrowers from the ITT Technical Institute more than $ 1.1b at the Forgiveness of the loan August 26, 2021 Contact: Press Office, (202) 401-1576, Press@ed.gov
  • Today, the Department of Education From the United States announced that it will make $ 1.1 billion at closed school the downloads available for the 115,000 additional borrowers who attended the now late ITT Technical Institute (ITT). This decision is based on a new revision of the problems that lead to the closure of ITT. These borrowers did not complete their title or credential and went from ITT on or after March 31, 2008. The Department estimates that 43 percent of these borrowers is currently in non-compliance. Today's action makes the total amount of loan downloads approved by the department since January 2021 to $ 9.5 billion, affecting more than 563,000 borrowers.

    This action extends the relief to the borrowers whose assistance to the ITT is overlapped with a period during which the institution involved in generalized misrepresentations on the true state of their financial health and the students deceived to face private loans Inauficible that supposedly were portrayed as grants help. ITT's malvacy led its financial resources to educate students to maintain school in the business for years more than years more than they would probably have, what would be left out of now. Approximately 7,000 of the borrowers covered by the announcement of the approval of the closed school today have also approved borrower's defense to reimbursement claims.

    "For years, ITT hid its true financial statement of borrowers while attracted many of them to take private loans with misleading and unavoidable terms that may have caused borrowers to leave school," said the secretary Education of the United States, Miguel Cardona. "Today's action continues the Department's efforts to improve and use its specific loan relief authorities to Provide significant aid to student borrowers. At the same time, the continuous cost of addressing ITT crime and other predatory institutions, once more highlights the need for stronger and faster responsibility throughout the federal financial aid system. "

    Under the Higher Education and Regulations Act, the Secretary of Education downloads loans from borrowers and reimbursements any Amount paid if borrowers did not complete their study program. Due to the closing of your school. This applies to borrowers with Loans from the William D. Ford Federal Loan program, the Federal Family Education Loan Program and the Federal Perkins Loan Program. To be eligible for a closed school download, the borrower must not have completed his program or transferring his credits or hours to another school. Downloads are also available for any borrower who withdrew from the institution within a few months of its closure. However, the Secretary of Education can, however, extend this period based on exceptional circumstances.

    After a comprehensive review of the circumstances that lead to the closure of ITT and previous years of misrepresentations and misconduct, the Cardona Secretary is exercising his authority to extend the school download window closed to 31 March 2008 for the ancient ITT students. This date was chosen based on an external evidence of the judicial bankruptcy proceedings for ITT, presentations with the US Securities and Exchange Commission. (SEC), and the Consumer Financial Protection Office (CFPB) . On March 31, 2008, it is when the company's executives publicly disclosed the beginning of a financial plan that initiated a series of misrepresentations to hide the true nature of school finance after a public loss of external financing, which led To change additional costs to students and hampered their ability to invest in the delivery of quality education to students.

    Next steps for borrowers

    in department regulations

    Categories:
    Provide  Forgiveness 

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