April 30, 2018

Warren Joins Donnelly, Colleagues in Calling for Department of Education to Assist Students Harmed by Closure of ITT Tech

Senators ask the Department to use all available means to help affected students, especially student borrowers with outstanding debt

Text of letter (PDF)

Washington, D.C. – United States Senator Elizabeth Warren (D-Mass.) today joined Senator Joe Donnelly (D-Ind.) and eleven other Senators in urging Secretary of Education Betsy DeVos to assist students harmed by the 2016 closure of ITT Tech. A sizeable number of students have financial debt due to their education and many have ITT Tech credits with little market value, but it remains unclear if the Department of Education is using all available means to help affected students. That is why Donnelly and the Senators sent a letter to DeVos asking the Department of Education to take swift action.

In 2016, the Department of Education promulgated new rules under its “borrower defense” authority to help more students receive a discharge of their federal loan debt. However, under its current leadership, the Department has suspended those rules and frozen an investigation into ITT Tech’s fraudulent statements that misled students.

The Senators said, in part, in the letter, “More than a year after ITT Tech’s closure, significant numbers of former students and their families remain stuck in financial limbo and with credits and degrees of little labor market value. These individuals await a decision from the Department on whether it will exercise its authority to provide debt relief to affected students using all available means.

“The Department must act expeditiously to help ITT Tech borrowers through both its closed school discharge and borrower defense authorities. We are concerned that the Department has provided little information to affected borrowers and the public about the number of successful closed school discharge applications among the eligible population, or the status of pending borrower defense claims.”

To see the full text of the letter, click here.