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Attorney General Josh Stein Wins More than $93 Million in Student Loan Forgiveness for More than 5,000 North Carolina ITT Students

For Immediate Release:
Tuesday, August 16, 2022

Contact: Nazneen Ahmed
919-716-0060

The Education Department approves $3.9 billion group discharge for 208,000 borrowers nationwide who attended ITT Technical Institute

(RALEIGH) Attorney General Josh Stein today announced that 5,270 North Carolinians who attended ITT Technical Institute will have their remaining federal student loans cancelled, totaling $93.4 million in debt forgiveness. In all, the U.S. Department of Education will discharge $3.9 billion in full loan discharges to 208,000 borrowers who attended ITT from January 2005 to the school’s closure in September 2016. These borrowers do not have to take any action – their federal student loans will be automatically cancelled.

“I’m grateful to the Department of Education for doing the right thing by giving more than 5,000 North Carolinians a fresh start at their educations and careers,” said Attorney General Josh Stein. “ITT took unfair advantage of students who were trying to get their degrees and build their lives. I’m proud to have fought for these students, and if any other for-profit schools defraud our students, I will not hesitate to hold them accountable as well.”

Attorney General Stein had previously petitioned the Education Department to cancel federal student loan debt for former ITT students. The for-profit school defrauded students by giving them false and misleading information about the value of an ITT degree and opportunities for high-paying jobs once they graduated, thus encouraging them to enroll and borrow loans. ITT operated campuses in Cary, Charlotte, Durham, and High Point in North Carolina. The school filed for bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid.

Attorney General Stein also praised the Education Department’s proposed improvements to its Borrower Defense, Public Service Loan Forgiveness and Closed School Discharge programs and encouraged additional protections so borrowers can have more equitable and transparent relief. These changes undo the previous federal administration’s rollback of student borrower protections, increase the department’s ability to hold predatory schools financially accountable for the costs of their misconduct, and provide a basis to expand borrower relief. Now, predatory schools that harm students will be limited in their ability to use binding arbitration agreements and class action waivers, and students will be more protected from abuse.

More on Attorney General Stein’s work to protect student loan borrowers:

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