HUNTINGTON Ƶ Thousands of former ITT Technical Institute students, including many from the Huntington area, will have access to loan forgiveness five years after the educational system was shut down nationwide.
The U.S. Department of Education announced Thursday it will make $1.1 billion in closed school discharges available to 115,000 borrowers who attended the now-defunct ITT Technical Institute.
The for-profit college chain announced in September 2016 it was shutting down all 130 of its campuses across the country, determining that it couldnƵt survive sanctions handed down by the U.S. Department of Education. At that time, ITT Technical Institute had one location in West Virginia, on U.S. 60 near the 29th Street exit of Interstate 64. The last reported number of students enrolled was approximately 300.
ƵIƵm thrilled that the U.S. Department of Education is supporting students impacted by the closure of ITT Tech through loan forgiveness. At the state higher education office, we worked following the closure to help find solutions for our local students Ƶ from helping them transfer credits to another college, to helping them navigate student loan and financial aid questions,Ƶ said Sarah Armstrong Tucker, chancellor of the Higher Education Policy Commission in West Virginia.
ƵStill today, IƵm sure students are feeling the effects of ITTƵs actions, and IƵm hopeful that this move by the federal government provides them with meaningful support.Ƶ
ThursdayƵs decision is based on a new review of the problems leading up to ITTƵs closure. At the time, Education Department officials said the company had become a risk to students and taxpayers. ITT also had been investigated by state and federal authorities who accused the institution of pushing students into risky loans and of misleading students about the quality of programs.
Borrowers affected by ThursdayƵs news did not complete their degree or credential and left ITT on or after March 31, 2008. The Department of Education estimates that 43% of these borrowers are in default.
Loan relief will be extended to borrowers whose attendance overlapped with the period of time when the Department of Education says ITT misrepresented its financial health.
ƵFor years, ITT hid its true financial state from borrowers, while luring many of them into taking out private loans with misleading and unaffordable terms that may have caused borrowers to leave school,Ƶ said U.S. Secretary of Education Miguel Cardona in a news release.
According to the Department of Education, ITTƵs malfeasance drove its financial resources away from educating students in order to keep the school in business for years longer than it likely would have, resulting in debts that are now being discharged.
Approximately 7,000 of the borrowers covered by the closed school discharge announcement also have approved borrower defense to repayment claims.
ƵTodayƵs action continues the DepartmentƵs efforts to improve and use its targeted loan relief authorities to deliver meaningful help to student borrowers,Ƶ Cardona said. ƵAt the same time, the continued cost of addressing the wrongdoing of ITT and other predatory institutions yet again highlights the need for stronger and faster accountability throughout the federal financial aid system.Ƶ
Borrowers who are eligible for a closed school discharge and attended an institution that shut down between Nov. 1, 2013, and July 1, 2020, will receive an automatic discharge as long as they did not enroll in another institution within three years of their schoolƵs closure. Eligible borrowers who attended ITT within 120 days of its closure in 2016 received automatic discharges in 2019. The majority of the ITT borrowers covered by ThursdayƵs action did not enroll elsewhere during the three years after ITTƵs closure and will not need to take any further action to receive a discharge.
Borrowers who enrolled elsewhere but did not complete their program of study may still be eligible for a discharge, but will need to submit an application. Borrowers can access the closed school discharge application by contacting their servicer or visiting .
Discharges will be processed beginning in September, and borrowers will start receiving automatic discharges in the following weeks.
