The Department of Education is set to cancel $3.9 billion in federal student loan debt for 208,000 former ITT Tech students, including those that attended as far back as January 1, 2005. This is great news for the thousands of students who were left in the lurch when the for-profit college closed its doors abruptly in 2016.
For-profit colleges like ITT Tech preyed on low-income students and students of color. They promise good jobs and high salaries, but in reality, they often leave students with mountains of debt and no real prospects for employment.
“The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause,” Education Secretary Miguel Cardona said.
“ITT defrauded hundreds of thousands of students,” said Richard Cordray, chief of Federal Student Aid. “By delivering the loan relief students deserve, we are giving them the opportunity to resume their educational journey without the unfair burden of student debt they are carrying from a dishonest institution.”
This federal grace is also a reminder of how easily students can be taken advantage of by predatory schools. It’s also a reminder that we need to do more to protect students from these kinds of predators.