Senate Democrats Ask Education Dept. to Discharge ITT Loans

September 16, 2016

More than 20 Senate Democrats have signed a letter to U.S. Secretary of Education John King asking the Education Department to support former ITT Technical Institute students by discharging their student loans.

In the letter, the senators asked the department to extend the 120-day window that allows students who withdraw before an institution's closure to receive a discharge. This would accommodate those students who withdrew from ITT Tech after March 1, 2014, prior to the launch of a number of federal and state lawsuits.

The senators also requested that the department stop collections on the loans of recent ITT borrowers who are in default and prevent or retract any negative credit bureau reporting for ITT students eligible for discharge. They also asked the department to apply proposed borrower-defense rule-making provisions related to automatic discharge to ITT students.

"These provisions ensure that borrowers who do not enroll at another school within three years of closure, and who otherwise qualify for a closed school discharge, see their federal debt eliminated even if they do not submit a formal application," says to the letter.

The letter follows on the heels of ITT Tech students launching a debt strike earlier this week to request that their loans be automatically discharged.

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