Offering 18,000 students $500 million in forgiveness for their ITT Technical Institute loans, the U.S. Department of Education is working overtime to rectify collegiate wrongdoing.
If you're one of those students, you'll want to know how to apply for ITT Tech loan forgiveness.
Why are ITT Tech students receiving loan debt relief?
ITT Tech, a for-profit college, announced it was closing its schools and filing for Chapter 7 bankruptcy in 2016. Prior to this, the Obama administration slapped it with numerous sanctions because of its fraudulent marketing. The school claimed its graduates had a particular success rate in finding jobs after graduation, but those statistics proved to be fraudulent. Additionally, it lied to its students about their ability to transfer credits to other colleges. Because students had a hard time transferring most or all of their ITT Tech credits, they made minimal progress on their academic journeys.
ITT Tech is just one example of a problematic for-profit college. Corinthian Colleges, which closed in 2015, is another. The for-profit institution was earning money from federal student loans that its students took out to attend its pricey colleges.
How to apply for ITT Tech student loan forgiveness
If you're a defrauded former ITT Tech student, you'll want to apply for loan forgiveness through a closed school discharge application.
There are two ways to complete the closed school discharge application:
If you received a closed school loan discharge application from your loan servicer, complete and return the form as you're directed.
Fill out this application from Federal Student Aid and send it to your loan servicer.
Alternatively, you can contact your loan servicer directly and ask for assistance in the application process.
How to find out who your loan servicer is
To apply for ITT Tech loan forgiveness, you need to contact your loan servicer. You can find out who's servicing your loan by logging into your Federal Student Aid account or calling 1-800-4-FED-AID.
Is there an application deadline for ITT Tech loan forgiveness?
There's no deadline for your closed school loan discharge aApplication. However, as the government has set a limit to the number of loans it can forgive, the sooner, the better.
Are you eligible for ITT Tech loan forgiveness?
The criteria for closed school discharge include:
You were enrolled when the school closed.
You were on an approved leave of absence when the school closed.
You withdrew from school no more than 120 days prior to your school closing (if your loans were disbursed before Jul. 1, 2020).
You withdrew from school no more than 180 days prior to your school closing (if your loans were disbursed on or after Jul. 1, 2020).
Loan forgiveness only applies to federal loans
If you have a private loan, you'll need to contact the lender directly. It may or may not have programs in place for loan forgiveness from closed for-profit schools.
When will you hear back about your ITT Tech student loan relief?
For those who have already applied for student loan relief, it will take a few weeks for the U.S. Department of Education to catch up with the backlog. Students will be notified individually upon approval of forgiveness.