President Joe Biden's administration approved the effort to forgive loans for students who attended ITT before the chain closed in 2016 after the institute was dealt sanctions by former President Barack Obama's administration.
The Education Department released a statement declaring IT made "repeated and significant misrepresentations" about its ability to help students find work after graduation between 2005 and the institute's 2016 closure. Some students reportedly had an even more difficult time finding jobs when they posted IT on their résumé, according to a readout from the department.
Education Secretary Miguel Cardona noted the move "will give thousands of borrowers a fresh start and the relief they deserve."
"Today’s action is part of the Biden-Harris administration’s continued commitment to stand up for borrowers when their institutions take advantage of them," Cardona went on to say.
ITT borrowers will be notified about their claim approvals in the coming weeks, according to the Department of Education. There are currently 100,000 claims still pending review.
Cardona will host a series of additional hearings later this month as the Education Department considers changes to policy that could enhance borrower defense.
Biden has already quashed liberals' calls for $50,000 worth of regular student loan relief for current and former students across the nation. However, the president's administration is looking into various ways to cancel $10,000 in debt per person.
Earlier this month, the administration raised its forecasts on losses the federal government will take on student loans by $53 billion due to lower repayment rates following the 2020 pandemic and the temporary student loan relief implemented by former President Donald Trump's administration.
Each year around this time, millions of students graduate college, having completed an educational path that hopefully will help them find a career and gainful employment.
Unfortunately, over the last few decades, the country has seen a tremendous spike in college tuition rates, far outpacing inflation. We need to make headway on cutting costs at colleges and making the investment worth the debt the student takes on. Since the high cost of college tuition is something that likely won’t go away anytime soon, we need not only to think about creative ways to cut costs but also to advise students on best practices to ensure they make wise decisions on which fields to study so they can actually afford to pay these loans back.
Institutions of higher learning have a responsibility to educate their incoming students about the risk of compiling tens of thousands, if not hundreds of thousands, in debt and entering a field of study that doesn’t position their students to succeed any more than they would if they didn’t attend college.