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
Call (888) 301-0584 or
schedule a free evaluation.
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.