Officials from ITT Educational Services, Inc. announced a closure of all 136 ITT Technical Institute locations on Sept. 6, 2016. On Sept. 16, 2016, ITT filed a Voluntary Petition for Chapter 7 Bankruptcy within the us Bankruptcy Court for the […]
Officials from ITT Educational Services, Inc. announced a closure of all 136 ITT Technical Institute locations on Sept. 6, 2016. On Sept. 16, 2016, ITT filed a Voluntary Petition for Chapter 7 Bankruptcy within the us Bankruptcy Court for the Southern District of Indiana and subsequently ceased all company operations. As a result, all ITT Technical Institutes have lost their eligibility to receive federal student aid funds from ED.
The announcement by ITT didn’t end in an instantaneous closure of the Webster College (DWC) location of the chain. On Sept. 13, 2016, Southern New Hampshire University (SNHU) announced that a teach-out agreement had been forged to assist DWC students continue their degree programs.
The teach-out will run through the top of the 2016–17 school year , with students at the top either graduating, moving to SNHU, or transferring to a different program. Classes continue on DWC’s campus in their current schedules, and residential students still reside on the Nashua, New Hampshire, campus for the rest of this school year . SNHU is hosting a series of data sessions on Webster College’s campus; the sessions began on Sept. 14, 2016.
Most students won’t be ready to finish their current program at ITT, although students who transfer to a replacement institution could also be ready to finish their current programs at the new institution. Each institution will have its own requirements that are wont to determine if any of your credits earned at ITT will transfer. If you are doing transfer into a comparable program offered by another institution, that institution will evaluate your ITT course work and can decide whether all of your completed credits are going to be accepted at the new institution and what remaining credits you’ll got to complete.
Closed School Loan Discharge program
This discharge program is for former ITT Tech students now looking for student loan forgiveness options.
You might be qualified for a closed school discharge if you did not complete your education in an ITT school because they were closed while you were attending or soon after you withdrew. A closed school loan discharge is a 100 % discharge of the federal Direct Loans, Federal Family Education Loan Program loans, or Federal Perkins Loans you took out to attend the closed school and recompense of payments you have already made.
To apply for student loan forgiveness through a Closed School Discharge program, you can either
– complete and return the Closed School Loan Discharge Application sent to you by your servicer,
– complete a Closed School Loan Discharge Application and return it to your loan servicer, or
– contact your loan servicer about the application process to discharge your loan.
However, students that transfer their credits to another institution would no longer be qualified. Under the Closed School Discharge program, loan amounts forgiven are treated as taxable income and may trigger a substantial tax burden.
On Thursday, December 13th, 2018 the Department of Education announced that they’re immediately approving $150,000,000 in Borrower’s Defense to Repayment Discharges (BDAR). It includes discharges for people who attended ITT Tech.
The sanctions of the Education Department on Carmel-based ITT Educational Services Inc. have laid support for past students. The goal is to take advantage of this little-known rule, called defense to repayment, which can wipe out their loans.
The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years but drew little attention until recently.
In the case of ITT Tech, who faces massive lawsuits and $560,000,000 reimbursement in response to their violations for committing illegal behavior against students just like you, Borrower’s Defense Discharges are readily available.
The best thing about BDAR discharges is that they can completely eliminate your loans. It means you won’t have to pay for student loans, but there’s another added benefit as well: you may even be likely to get a refund for the money you’ve already paid back.
Federal law gives the Education Department discretion to forgive student loans for those who claim they were deceived or that their college broke state laws. The government essentially made the claim that ITT has done that. Thus, they have invited former students to request what could amount to hundreds of millions of dollars in student loan forgiveness. The rule applies to all previous students with federal loans. However, this does not cover private student loans.
In the meantime, the Education Department is encouraging borrowers to email their claims. Instructions are on the Education Department’s website.