The U.S. Education Department said Wednesday it’s erasing student debt for thousands of borrowers who attended a for-profit college chain that made exaggerated claims about its graduates’ success in finding jobs. The Biden administration said it is approving 18,000 loan forgiveness claims from former students of ITT Technical Institute, a chain that closed in 2016 after being dealt a series of sanctions by the Obama administration.
More than 1,000 students who were enrolled at now-closed ITT Technical Institute campuses in Indiana are eligible for nearly $10 million in student loan forgiveness, the state’s attorney general announced Tuesday.
Hundreds of former ITT Tech students in Indiana will find some ease from their student loans now that millions have been secured in a national legal settlement to cover their debt.
Former ITT Educational Services Inc. CEO Kevin Modany has agreed to pay $200,000 and accept a five-year ban from serving as an executive of a public company to settle a Securities and Exchange Commission lawsuit accusing management of hiding the rapidly eroding financial condition of the now-defunct firm from investors. Former ITT Chief Financial Officer Daniel Fitzpatrick agreed to pay $100,000 and accept the same ban under a separate settlement.