One of the hot topics that students are concerned about is closed schools. After all the years of studying and paying for their expenses, students got shocked that they might not get a diploma because their school is closing. On the other hand, a vast majority of those students are paying tuition fees through either governmental or private aid programs. It makes the cases even worse because not only could they not officially graduate, but they might also pay for student loan debt for a considerable amount of time. That was the case in ITT Tech’s sudden closure too. Today we’re going to talk about ITT Tech Loan Forgiveness and how you can apply for one.
On September 6 of 2016, the Department of Education got notified about the closure of the universities that are working under ITT Educational Services. The company clearly stated that all the universities and branches of ITT located in more than 35 states would be closed. That led the way for the ITT tech loan forgiveness issue. This notification would mean that around 136 local institutes would stop their services as soon as the petition is signed.
After ten days, on September 16, ITT Educational Services filed that petition while using Chapter 7 for bankruptcy. The case was sent to the US Bankruptcy Court that is located in Indiana. As this file would cease all the universities’ professional operations, students became eligible for several governmental aid programs. They would not be able to get funds from the Education Department because they were no longer the students of the university.
Are there any available options for students regarding the ITT Tech Loan Forgiveness?
The chances for ITT Tech Loan Forgiveness was diminished for students. As a result, they tried to find new ways to cope with the issue and handle the student loan debt amount. For those students who were attending ITT Tech University at a time when they declared their closure, do not lose hope yet because there are other options that can help you. To complete ITT Tech Loan Forgiveness and get rid of the debt amount, you have two significant options. What are those? The first one is the Closed School Student Loan Discharge, and the second one is credit transfer. We will explore both options in detail, but before that, let’s analyze the history of ITT Tech until closure and see the underlying causes of this result.
History of ITT Tech Loan Forgiveness
In April of 2016 the Education Department got a message from Accrediting Council regarding the ITT Tech institute which is the subsidiary of the ITT E.S. On that message, the Accrediting Council stated that due to several reasons, and actions that are performed by ITT Tech university administration, the university cannot meet the standards of AC. Besides that, Accrediting Council questioned a variety of aspects such as:
- The ability of ITT to serve students
- The administrative capacity of ITT Tech
- Financial viability and Organizational integrity inside the ITT
After this message, the Education Department decided to send a warning for ITT Tech. That warning was a show-cause letter that demanded ITT Tech to increase its surety with the Education Department from 10 percent to 20 percent. For those of you who are not familiar with the term, let’s quickly explain. A surety is a kind of obligation that universities need to pay for. In cases, if the school gets closed, using the surety amount, the Education Department can meet institutional requirements and cover primary liabilities.
After the documents sent to the university, the ITT Tech loan forgiveness was still under question because the institution was not fully complying with the set rules. So, on June 17 of 2016, the Accrediting Council made a final decision about the university. This decision was clearly stating that:
- ITT Tech is not showing any improvement
- they are not complying with the rules
- and they are unlikely to comply with them in the future
As they failed to meet the guidelines, it was the only choice for ITT Tech to raise the white flag and close its branches. However, the real victim of the case was indeed, students. After these decisions, they lost their hopes for ITT Tech Loan Forgiveness.
How ITT Tech Found Guilty and what they have done wrong?
ITT Tech University was accused of misleading the students by providing them with falsified data and information. One of the primary examples was about job placement rates. ITT managed to mislead prospective students by showing them the results of previous students who became successful in the workforce. According to the ITT Tech Student Loan lawsuit between ITT and Massachusetts Attorney General, the university did all these things since 2010. The ITT pressured students with their fraudulent documents and made them apply for student loans.
The students who seek the opportunity for a better future became victims of these acts. The actual job placement rate that ITT graduates were making was around 50 percent. Though, the university was trying to convince students by listing it as high as 90 percent. The job placement rate should be based on the degree of the student. However, ITT changed the official rules and counted the students who are working in other fields too. On the other hand, the recruitment office was another victim told by the university to call and contact at least 100 students per day. There was heavy pressure on both sides by ITT, which led to the university’s unfortunate ending.
Timeline of the ITT Tech Student Forgiveness Lawsuits
The ITT Tech student loan lawsuit did not start from here. ITT has a long history of fraudulent actions, but they managed to survive all those lawsuits for decades. For instance, in 1998, former students of the university sued ITT Tech, claiming that the university tricked them. Those students wanted justice and eligibility for ITT Tech Loan forgiveness. However, the case closed later that year, and students lost their chance for ITT Loan Forgiveness.
Another ITT Tech Student Loan Lawsuit appeared in 2014. The CFPB sued ITT Tech, claiming that the university forced students to take the loan and attend classes. Besides, they stated that the university created a harsh situation for students by making their credits untranslatable. The history of unpleasant lawsuits leads to the final decision that closed ITT Tech. Over 138 campuses in more than 30 States, 40.000 + students studied in ITT, and most of them faced those challenges. Now it is time for those students to claim justice and acquire ITT Tech Student Loan Forgiveness.
ITT Tech Loan Discharge
As we already mentioned, there are two possible options for those students that suffer from extensive loan debt. ITT Tech loan discharge is one of those solutions. The good news is that through a closed school loan discharge program, you can actually get rid of all the debt amount and discharge the loan completely. If the students meet the program’s eligibility criteria, they should not pay for the rest of the loan debt. What are those criteria?
If students acquired:
- Perkins loanPublic Loan,
- Direct Student loan,
- or FFEL loans,
they have a chance to be eligible for this program. Besides that, you also have to qualify for one of the following:
- You should have been a student when the school got closed
- Student withdrew from class for 120 days until the school shut down
- You should have been in academic leave during the time or 120 days prior to the school’s closing
If you are considering that either one of these situations applies to your case, then you have a chance for ITT Tech Loan discharge.
What makes you illegible?
- If you withdrew from school long before 120 days, you would not get loan discharge
- If you got enrolled in another aid program that the government offers, you would not be able to get a discharge too
- The last case is when all the coursework and related graduation requirements have been met, but you did not get the diploma yet. In this case, you would not be able to apply for loan discharge too.
Keep in mind that the mentioned criteria are only applicable to those students who have federal student loans. If you have a private student loan, you need to contact your loan lender. After that, try to learn more about the possibilities of closed school loan discharge.
How to apply for this program?
You need to be aware that student loans would not be dismissed automatically whenever the school you attend is closing. That is why you need to be informed about the application procedures. For public student loans, students need to fill the loan discharge application. Then, refer that document immediately to their loan servicer. After that, the student needs to talk with the loan servicer about details of the process. For a closed school loan discharge program, there is no set duration for this semester. However, students should submit that application as soon as it is ready. Another issue that concerns students is about payments.
Most of them are hesitant to pay for the loans that they submit applications regarding the discharge. It is riskier than you think, so, do not forget to pay for the loans until you get the message about approval. If you get approval, you will not pay for the loan since that time. Though, your application might be denied too. In that case, you can check the application form once again. Moreover, make sure to talk with your loan servicers about possible errors. If you state the facts accordingly and have a strong case for eligibility, there is a high chance that the Education Department will approve it.
Stay informed about ITT Tech Loan Forgiveness and Discharge Programs.
If you attended a university that closed while you are still studying, you need to actively seek out opportunities to handle the loan debt. As you probably know, for federal loans, the discharge process is a bit easier than private ones. You need to analyze each option by considering the case-by-case approach and, after that, make your final decision. There is a possibility that closed school loan discharge may not be the best option. For that reason, you need to search for available ITT Tech Loan Forgiveness programs and choose the most applicable one.
For those students who would like to continue their higher education and get a degree, there is another option that is called credit transfer. With closed school discharge, you may get the full discharge over your loan debt; however, you would not be able to complete your degree in that case. With credit transfer, former ITT tech students can take their credits to comparable programs in another university. While you apply for credit transfer, the university you are applying to will evaluate your case and decide about your future.
While evaluating, they will decide which coursework that you have completed in the ITT Tech is worthy of credit. Only after that, they will advise you to take the additional courses for finishing the degree. The Education Department is working hard to make things easier for students. They are actively discussing opportunities with universities to which students can transfer credits. ITT Tech needs to restore the credits for the last semester. Otherwise, students would have difficulties while trying to transfer the credits to the new university. When a student decides to utilize this option, he/she should contact the university and see whether they accept his/her request. Keep in mind that you will lose the chance for ITT Tech Loan Forgiveness or closed school discharge programs by applying for credit transfer.
FAQs about ITT Tech Loan Forgiveness
Will students be able to complete their studies?
For those students that transfer their credits to another school, it is possible. On the other hand, students who chose closed school discharge will miss this opportunity.
Will the university that the student is transferring to should have the same accreditor with ITT Tech?
This is one of the common concerns by students, and the answer is no. Students can freely explore available options. The accreditor does not make any difference for their university choice as long as the chosen university accepts that request.
How can students get their academic transcripts from ITT Tech considering the fact that the university is closed?
Students can get academic transcripts from the determined location. ITT TECH will send further notice about that location to those students.
Where can students find information about the federal student aid that they get?
To see this type of information, students need to log in to their account at student aid dot gov. By logging to your account through FSA ID, you can check the account, see your current case, and determine which programs you can apply.
What about the Federal Pell Grant that students of ITT Tech had?
Pell Grant is an aid program that provides students with 100% funds for expenses. Over six years, the program is active for the student. As the ITT Tech is closed and those people are no longer students, the availability of Pell Grant is under question. Those students who attended ITT need to check their emails regularly. If there is a change or reset about the Pell Grant funds’ availability, the DOE will notify them through email.
What does it mean to discharge student loans?
Student loan discharge is a program that enables you to get rid of all the remaining debt amount. Once you acquire ITT Tech loan forgiveness, you will receive a refund for payments, whether they are made by forced collection or voluntarily.
Are you eligible for student loan debt relief through a tuition recovery fund?
Tuition recovery funds are an excellent opportunity for students who cannot fully cover their expenses and loan debt. For instance, if the student had the chance to get a closed school loan discharge from ITT Tech, but his/her expenses are far more than that, they can use tuition recovery funds to close the gap. Each state has various regulations regarding this fund. So, per your particular case and the area that you are living, you can get more information from respective organizations of that specific state.
What is next for those students who graduated from ITT Tech but have the remaining debt amount in their accounts?
There are several options for students who graduated from ITT Tech and are still paying for their loan debt. If the school defrauded you through the measures mentioned above in the ITT Tech lawsuit, you could apply it to BDAR (Borrower’s Defense to Repayment) Program. BDAR is a program that can help you to get ITT Tech loan forgiveness and completely wipe out the remaining debt. The main advantage of this program is that students can refund themselves even after canceling the loan debt.