On September 6th 2016, ITT Technical Institute announced that they are ceasing operations including all online and classroom curriculum. With over 130 campuses in 38 states, the magnitude of affected students is expected to be high.
If you were a student enrolled in a program with ITT Tech and have been unable to complete your program due to the closure, you may be entitled to have 100% of your eligible federal loans discharged and receive a refund.
Why did ITT Technical Institute close?
The closure came amid increased oversight resulting from numerous state and federal investigations. ITT Tech shut down shortly after the Department of Education took measures to mitigate their risks against students. A lawsuit brought by the Consumer Financial Protection Bureau (CFPB) alleged that ITT Tech used unfair and deceptive practices such as:
- Misleading borrowers as to the monthly payments and cost of borrowing
- Charging up to 10% origination fees and interest rates as high as 16.25%
- Advertising inaccurately high job placement rates
Get Help Resolving ITT Tech Student Loan Debt
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What are my options?
It may be possible to transfer credits from an ITT Tech program to another educational institution, but doing so may cause the loans to become ineligible for closed-school discharge. Instead, it may be strategic to first pursue a discharge. If the closed-school discharge application is approved by the Department of Education, you may be able to permanently eliminate your eligible federal student loans. In other words, you can have the opportunity to get out of debt and to start a new education at another school.
Who qualifies for ITT Tech Debt Forgiveness?
You may be eligible for loan discharge if you were enrolled with ITT Tech at the time it closed, or if you withdrew on or after May 6th, 2016, and you did not complete your program. Approval of any application for loan discharge is determined by the Department of Education, your loan servicer, and/or their agents.
How to apply for closed-school loan discharge?
Applications for discharge can be obtained through the respective loan servicer. The application must be completed and submitted with any necessary documentation. Upon review of the application the borrower will be informed of whether the discharge request is approved or denied. Denials for closed-school loan discharge generally cannot be appealed.
It’s important to remember that discharging loans due to school closure can result in a tax liability for the borrower, as the forgiven balance may be treated as taxable income. We do not provide tax advice. It is best to consult with a certified tax advisor or CPA to learn more about potential tax ramifications.
If you were a student at ITT Tech and have been affected by the closure, call us at 877-717-0098 for a free evaluation.
Our legal team helps people find solutions to their student loan debts. As a private firm, the Law Office of Simon Goldenberg PLLC is unaffiliated with the DOE and any loan servicers. Contact us for help with student loan debt.