On this page you’ll find information associated with the recent oversight and compliance actions imposed against ITT Educational Services and therefore the subsequent closure of ITT Technical Institutes. Featured below is information on how former ITT students can continue their education, apply for closed school loan discharges, retrieve student records, and more. Borrower defense to repayment may be a process that permits you to request that ED forgive your loans because your school misled you once you obtained a federal loan to attend the varsity . Currently, your school’s misconduct must be a violation of state law for the claim to succeed. If your borrower defense application is successful, ED may forgive all or some of your federal student loans, and should refund amounts already paid by you on those loans.
You are still liable for repayment of the loans taken bent finance your education at ITT. However, students who attended a faculty and believe they were defrauded or that their school otherwise violated applicable state law could also be eligible for a kind of loan forgiveness called borrower defense to repayment.
In January 2017, the U.S. Bankruptcy Court for the District of Southern Indiana approved a petition from ITT’s Trustee to contract with Heartland ECSI to supply former ITT students with their 1098-T tax forms. Form 1098-T may be a statement that reports tuition expenses you purchased college tuition and related expenses.Students impacted by these closures can also be eligible for State Tuition Recovery Fund refunds. For information on availability and eligibility, see column J of this spreadsheet and see our commonly asked questions page.
Closed School Loan Discharge program
This discharge program is for former ITT Tech students now looking for student loan forgiveness options.
You might be qualified for a closed school discharge if you did not complete your education in an ITT school because they were closed while you were attending or soon after you withdrew. A closed school loan discharge is a 100 % discharge of the federal Direct Loans, Federal Family Education Loan Program loans, or Federal Perkins Loans you took out to attend the closed school and recompense of payments you have already made.
To apply for student loan forgiveness through a Closed School Discharge program, you can either
– complete and return the Closed School Loan Discharge Application sent to you by your servicer,
– complete a Closed School Loan Discharge Application and return it to your loan servicer, or
– contact your loan servicer about the application process to discharge your loan.
However, students that transfer their credits to another institution would no longer be qualified. Under the Closed School Discharge program, loan amounts forgiven are treated as taxable income and may trigger a substantial tax burden.
On Thursday, December 13th, 2018 the Department of Education announced that they’re immediately approving $150,000,000 in Borrower’s Defense to Repayment Discharges (BDAR). It includes discharges for people who attended ITT Tech.
The sanctions of the Education Department on Carmel-based ITT Educational Services Inc. have laid support for past students. The goal is to take advantage of this little-known rule, called defense to repayment, which can wipe out their loans.
The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years but drew little attention until recently.
In the case of ITT Tech, who faces massive lawsuits and $560,000,000 reimbursement in response to their violations for committing illegal behavior against students just like you, Borrower’s Defense Discharges are readily available.
The best thing about BDAR discharges is that they can completely eliminate your loans. It means you won’t have to pay for student loans, but there’s another added benefit as well: you may even be likely to get a refund for the money you’ve already paid back.
Federal law gives the Education Department discretion to forgive student loans for those who claim they were deceived or that their college broke state laws. The government essentially made the claim that ITT has done that. Thus, they have invited former students to request what could amount to hundreds of millions of dollars in student loan forgiveness. The rule applies to all previous students with federal loans. However, this does not cover private student loans.
In the meantime, the Education Department is encouraging borrowers to email their claims. Instructions are on the Education Department’s website.
https://studentloansresolved.com/2019/01/11/closure-of-itt-tech-institutes-student-loan-forgiveness/