Attorney General Tong Praises U.S. Department of Education Approval of $3.9 Billion Loan Discharge for ITT Technical Institute Students
300 Former Connecticut ITT Tech Students to Receive $5 Million in Relief(Hartford, CT) – Attorney General William Tong today praised a decision by the U.S. Department of Education discharging all remaining federal student loans for borrowers attending ITT Technical Institute from January 1, 2005 through its closure in September 2016. The decision will result in 208,000 borrowers receiving $3.9 billion in full loan discharges. In Connecticut, 300 former students will receive $5 million in loan relief. Eligible student borrowers will automatically have their loans discharged without any action required.
The now defunct for-profit school defrauded thousands of individuals by encouraging them to enroll and borrow loans based on false and misleading information about the value of an ITT degree and empty promises of high-paying jobs after graduation.
Today’s announcement follows a borrower defense application filed by Attorney General Tong and 24 other attorneys general asking the U.S. Department of Education to cancel federal student loan debt for ITT Tech students. Their application cited deceptive tactics used to convince students to attend the school and borrow federal student aid.
“Students enrolled at ITT Tech seeking an education, and left saddled with debt and empty promises,” Attorney General Tong said. “Today’s action will provide billions of dollars in relief—including $5 million to 300 borrowers in Connecticut. Secretary Cardona has been an aggressive leader in providing relief to students and holding predatory institutions accountable. I look forward to continuing to work with Secretary Cardona and the Biden Administration to strengthen necessary protections and oversight to ensure this deception can never be repeated.”
Assistant Attorney General John Langmaid and former Finance Section Chief Joseph Chambers assisted the Attorney General in this matter.