Did you take out loans to attend ITT Tech?

Thursday, September 08, 2016

The announcement that ITT Educational Services abruptly shut down all of its campuses, effective immediately, comes just one week after the U.S. Department of Education halted student enrollment at ITT because of longstanding issues involving the deception of students. As a result of its actions, ITT has put 40,000 of its students and 8,000 of its employees in a confusing and complicated position. The Department of Education recently sent a message to ITT Tech students and created a new announcements page that will update students as the situation develops.

 

Federal student loan borrowers:

If you were enrolled or recently left an ITT Tech college that has since closed and have not yet completed your degree or program, you may be able to discharge (cancel) your loans if you apply for a closed school loan discharge.  

If you transfer the credits you’ve earned at ITT Tech toward a comparable program at another school and you complete or are in the process of completing that program, you will not be eligible to receive a closed school loan discharge. Also, if you do have your federal loans discharged because your college closed and you end up transferring credits to a similar program at another college, you may have to pay back the loans that were discharged. If you receive an offer from another college to transfer your credits, be sure you understand how it will affect your right to discharge your federal student loans.

Parents may also seek discharge of any Parent PLUS loans used to fund the expenses of dependent students who were unable to complete their degree due to a school closure.

 

Private student loan borrowers:

Even if your school closed, options for private loan borrowers are more limited and you are likely still responsible for repaying the loans. However, some states may have programs that assist students with private student loans in the event of a college closure. Additionally, some private student lenders may offer options to assist certain borrowers in this situation. Contact your student loan servicer (the company that sends you your monthly student loan bill) and ask them about your options. Your servicer will also inform you of any repayment options that are available to you. If you have problems with your private student loans, or your loan servicer, submit a complaint to the CFPB online or by calling the bureau at (855) 411-2372.

 

For more information on your options, or to view the department's webinar series that aims to address ITT students’ questions and concerns, please visit the Department of Education's website.