DeVry, ITT Tech students among thousands of defrauded borrowers to receive $415 million in loan cancellation
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The Education Department said Wednesday that it will cancel the federal student loans of nearly 16,000 people defrauded by DeVry University, ITT Technical Institute and Minnesota School of Business/Globe University.
This marks the first time the department has approved debt relief claims from former students of an institution, DeVry, that is still open and receiving federal financial aid funding.
Nearly half a million people have petitioned the department to forgive their loans under a statute known as “borrower defense to repayment.” Most attended colleges that went belly up, leaving the federal government to foot the bill for loan forgiveness.
But with DeVry, the department can, and says it will, recoup its costs. The department has identified about 1,800 DeVry students who are eligible for $71.7 million in debt relief.
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