The Washington Post | The Washington Post | Getty Images The U.S. Department of Education announced Tuesday it will cancel all remaining federal student debt taken out by borrowers defrauded by ITT Technical Institute since 2005, providing $3.9 billion in relief to about 208,000 people. ITT Educational Services was once one of the largest operators of for-profit technical schools in the U.S. and shut down in 2016. Borrowers would not have to apply for the relief, the Education Department said. The Department of Education found that ITT Tech engaged in widespread and pervasive misrepresentations, including lying about students’ ability to get jobs or transfer credits. More from Personal Finance: 30 Companies Helping Employees Pay Off Student Loans Here’s How to Save on Groceries Amid Food Price Inflation Typical Job Switch Received Nearly 10% Pay Increase, Study Finds “The evidence shows that for years, ITT leaders deliberately misled students about the quality of their programs in order to take advantage of federal student loan programs, without considering the hardships this would cause,” the education secretary said. of USA Miguel Cardona. statement. “The Biden-Harris administration will continue to defend borrowers who have been defrauded by their colleges while working to strengthen oversight and enforcement to protect current students from similar fraud and abuse,” Cardona added. To date, the Biden-Harris administration has approved the cancellation of nearly $32 billion in student loans for 1.6 million borrowers. “President Biden continues to use existing legal authority to forgive more student loan debt than any previous president,” said higher education expert Mark Kantrowitz. But the White House is currently under intense pressure to cancel student debt for all borrowers, and President Joe Biden has promised to make a decision on how to act, if not, by the end of the month. This is a developing story. Check back for updates.
