BUFFALO, N.Y. — The Attorney General of New York has partnered with attorneys general of 21 other states calling for the US Department of Education to forgive the loans of ITT Tech students that were enrolled when the school went bankrupt in 2016.
Attorney General Letitia James was one of 22 attorneys general who signed a letter that was sent to Federal Student Aid Chief Operating Officer Mark Brown. In the letter, the attorneys general question if the Department of Education discharged loans of students who are enrolled at defunct schools.
"The Department of Education's neglect has saddled students across the country with approximately half a billion dollars in student debt," James said. "Unfortunately, school closures often leave students worse off than when they enrolled- stuck with debt, no diploma and without enhanced career prospects. For these borrowers and their families, discharge of federal loans is extremely important, which is why I am committed to ensuring all eligible ITT students receive the closed-school discharge they deserve."
By law, the Department of Education must forgive the loans of enrolled students within 120 days of the school closing who decide not to transfer their credits to another institution.
In May 2019, the Department of Education estimated that 52,000 former ITT Tech students from 149 campuses, including one in Getzville, were eligible to recover over $833 million in relief. However, only 7,000 former students have recovered less than $95 million since the school closed over three years ago.
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