Another batch of loans belonging to former students at ITT Technical Institute has been wiped out by the Education Department, this time for a slightly different reason.
The department will forgive $1.1 billion in student loan debt belonging to 115,000 borrowers who attended the now-defunct ITT Tech on or after March 31, 2008, under a legal stipulation called closed school discharges. To qualify for a closed school discharge, students must have been unable to complete their degree because the institution they were attending closed, and they must not have transferred credits to another school. The department estimated 43% of the ITT Tech borrowers affected by the announcement are currently in default on their loans.
In June, the department forgave $500 million in debt owed by 18,000 former students of ITT Tech who claimed the school misled them. Since January, the Education Department has wiped out $1.5 billion in debt belonging to former students of four schools through these so-called borrower defense claims.
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