Third Way Statement on Extended Closed School Discharge for ITT Tech Borrowers

WASHINGTON – Third Way issued the following statement from Lanae Erickson, Senior Vice President for Social Policy & Politics, on the Department of Education’s announcement of $1.1 billion in closed school discharges for student loan borrowers from ITT Tech:

“Students who were misled by predatory colleges and whose institutions have closed are entitled to relief from their student loan debt—and today’s announcement from the Department of Education ensures that 115,000 more borrowers who attended the now-defunct ITT Technical Institute (ITT) will receive $1.1 billion in much-needed relief. The evidence is clear that for years prior to its closure in 2016, ITT misrepresented its financial status and steered students into predatory loans. By extending the closed school discharge window for former ITT students, the Department recognizes the residual damage caused to them and the urgency of providing long-overdue relief.

“We applaud Secretary Cardona and the Department’s actions today to use the authorities at their disposal to deliver targeted forgiveness that will make these 115,000 ITT borrowers whole and provide especially meaningful relief to the approximately 43% of those borrowers who are currently in default on their loans. Through this action, the Biden Administration continues to demonstrate its steadfast commitment to putting students and borrowers first, and we look forward to ongoing efforts to strengthen accountability in federal financial aid and student loan servicing and to ensure that postsecondary education is accessible and valuable for all students.”