Feds forgive $40M in debt for Oregon’s former ITT Tech students

Published 11:41 am Tuesday, August 16, 2022

The U.S. Department of Education will forgive nearly $40 million in debt held by 2,090 Oregonians who enrolled at ITT Technical Institutes between 2005 and 2016.

The private for-profit college operated a single campus in Oregon, near the Portland airport, before it closed abruptly in 2016.

The federal department announced Tuesday that it will forgive $3.9 billion in college loan debt for 208,000 people across the country. U.S. Secretary of Education Miguel Cardona says ITT Tech misled students about the value of a degree in order to profit off of federal student loans.

“It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises,” Cardona said in a news release.

Oregon’s Ellen Rosenblum was among 25 state attorneys general who asked the department to forgive loans to students defrauded by the now-defunct school, which operated in 38 states.

This recent round of debt forgiveness adds to the $1.9 billion in ITT loans the federal government has already discharged. Former students will have federal student loans discharged regardless of whether they have applied through the government’s borrower defense program.

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