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Attorney General Aaron Frey and U.S. DOE Announce Loan Discharge for ITT Technical Institute Borrowers
August 17, 2022
FOR IMMEDIATE RELEASE
Contact: Danna Hayes
Danna.hayes@maine.gov
Attorney General Aaron Frey and U.S. DOE Announce Loan Discharge for ITT Technical Institute Borrowers
$2.7 Million in Federal Student Debt Owed by Maine Borrowers to be Discharged
AUGUSTA –Attorney General Aaron Frey has announced that as part of an action by the U.S. Department of Education, Maine students of ITT Technical Institute (“ITT”) have been approved for discharge of $2.7 million in federal student loan debt. Nationally, the Department will be discharging $3.9 billion dollars for 208,000 borrowers. In Maine, 180 borrowers who attended ITT between January 1, 2005, and September, 2016, will see repayment discharge. No action on the part of the borrowers is required.
“Education should be an avenue to opportunity and financial stability. I’m gratified that my office could work with the U.S. DOE to ensure that Mainers who were defrauded by ITT Technical Institute will have their federal loans discharged,” said Attorney General Aaron Frey. “Hopefully this recoupment will allow wronged students to continue to pursue their career goals.”
The announcement is the latest federal action against ITT, which began when the Consumer Financial Protection Bureau filed suit in 2014, accusing ITT of widespread and pervasive misrepresentations regarding job placement rates, transfer credits and programmatic accreditation. Prior actions related to ITT have resulted in $1.9 billion in discharges for 130,000 students.
“Today, I am glad to announce the results of our work with AG Frey to hold ITT Technical Institute accountable for cheating so many students out of their time and money,” said Federal Student Aid Chief Operating Officer Richard Cordray. “Students who put their trust in ITT were lured by lies about their job prospects and did not get the quality education they were promised. These students now will have their remaining federal student loan debt discharged without needing to take any further action.”
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