AG Tong Joins 24 States, DC in Urging US Department of Ed to Cancel Loans of Certain ITT Tech Students
Attorney General Tong joins 24 states and the District of Columbia in urging the US Department of Education to cancel loans for some ITT Tech students
(Hartford, CT) – Attorney General William Tong today urged the US Department of Education to write off the federal student loan debt of those who attended the ITT Technical Institute.
The now-defunct for-profit school defrauded thousands of people into enrolling and borrowing internet loans based on false and misleading information about the value of an ITT degree and empty promises well-paying jobs after graduation.
the defense request from the borrower a bipartisan coalition of 24 states and the District of Columbia today deposed students who attended ITT Tech between at least 2007 and 2011, when these deceptive tactics were used to convince students to attend school and d ” borrow federal student aid. This widespread and pervasive misrepresentation has violated national consumer protection laws.
Federal law allows the Department of Education to cancel federal student loans when borrowers have been deceived into obtaining loans. Attorneys General are calling for complete relief from ITT students, including repayment of money students have already paid on these loans.
“Students enrolled at ITT Tech looking for an education and instead the school has fed on their hopes and dreams and left them with debts and empty promises. Said Attorney General Tong. “These students who have been defrauded by ITT Tech are entitled to a loan forgiveness from a legal as well as a moral point of view – these students should not have to repay the loans they were deceived into taking.”
Based on a Congress Report 2012, ITT enrolled approximately 282,000 students across the country between 2007 and 2010. During this enrollment period, ITT showed a document, “Value Proposition for Employed Graduates,” to potential students to convince them to enroll. and, in most cases, to borrow thousands of dollars in federal student aid. Analysis of the Value Proposition Table in the document, revealed that ITT has distorted the value of its education, claiming that it will be substantial, and that enrolled students will get well-paying jobs after graduation with a constant rate of earnings growth.
The ITT value proposition graph shows a projected annual salary over an estimated working life, which distorts the projected annual earnings of ITT graduates to $ 100,000 more than the average earnings of workers with the same skills.
Dr Jordan Matsudaira, associate professor of economics and educational policy at Columbia University, analyzed and assessed the accuracy of this graph and ITT’s claims. Matsudaira found that ITT massively overestimated the financial gains borrowers could reasonably expect from an ITT program.
The request was led by Colorado Attorney General Phil Weiser and Oregon Attorney General Ellen Rosenblum, who were joined by Attorney General Tong and Attorneys General for the District of Columbia, Hawaii, Idaho, Illinois , Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota. , Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Tennessee, Vermont, Virginia, Washington and Wisconsin.
- Twitter: @AGWilliamTong
- Facebook: TC Attorney General