Former Students of Defunct ITT Tech Receive $95.1 Million Loan Relief – The Wall Street Journal
ITT Tech, once among the nation’s largest for-profit college chains, filed for bankruptcy and shut down in 2016
WASHINGTON—The Education Department is providing loan relief to some 7,800 former students of the ITT Technical Institute, with debts totaling $95.1 million being forgiven by the government years after the giant for-profit school chain closed.
The department said that it has identified 7,878 former students of ITT Tech as eligible for a program in which loans are discharged automatically within three years of a school closure. Of those borrowers who attended the school, 7,697 had received loan forgiveness as of Jan. 3.
The department’s action was disclosed in a letter sent by Brian Siegel, a lawyer for its postsecondary education division, to National Student Legal Defense Network, a borrower advocacy group pressing for the debt relief.
ITT Tech, once among the nation’s largest for-profit college chains by revenue, filed for bankruptcy and abruptly shut down in 2016, forcing more than 40,000 students to look for another school and leaving many with large student loans.