Biden Cancels $3.9 Billion of Federal Student Loans for Borrowers Who Attended ITT Technical Institute

The Department of Education said it will cancel almost $4 billion of federal student loans for 208,000 borrowers that attended ITT Tech.

By , Attorney

On August 16, 2022, President Biden's U.S. Department of Education (Department) announced that it will cancel $3.9 billion of student loan debt for 208,000 borrowers who attended ITT Technical Institute (ITT). The Department said that it will discharge all remaining federal student loans that borrowers received to attend ITT from January 1, 2005, through when the school closed in September 2016.

This discharge includes borrowers who haven't yet applied for a borrower defense to repayment discharge.

So, federal student loans received to attend ITT will be discharged without any additional required action on the borrower's part.

The Department also announced loan discharges for just under 100 borrowers who enrolled in the Medical Assistant or Medical Billing & Coding Program at Kaplan Career Institute's Kenmore Square location in Massachusetts from July 1, 2011 to February 16, 2012.

Since taking over the presidency, President Biden has canceled around $32 billion of federal student loans for 1.6 million borrowers. Specifically, in 2021 and 2022, the U.S. Department of Education has announced that:

Also, the American Rescue Plan Act exempts student debt forgiveness from federal taxation until January 1, 2026.

Effective date: August 16, 2022