On Tuesday, President Joe Biden announced that he will be eliminating $3.9 billion of student loans.
All remaining federal loan borrowers who attended ITT Technical Institute, a for-profit college, from January 2005 to September 2016, when it closed, will have their loans discharged. This will come from borrower defense to repayment, and the borrowers don’t need to submit an application to have their loans canceled.
This move has been put into place as Biden decides if he should implement a wide-scale student loan cancellation. He is also determining whether to extend the student loan payment pause for the millions of people with student loans.
“It’s time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises. The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause…,” stated Miguel Cardona, U.S. Secretary of Education.
In June, the Biden administration eliminated $6 billion of student loans for 200,000 people through the borrower defense to repayment.