“Attacking the Concept of Debt” | Harvard Magazine
Only a few years ago, Douglas Jones, who worked night shifts as a security guard at a nursing home in Roxbury, was hesitant to spend even $10 more than his typical budget allowed. Payments on his student loan debt were being withdrawn directly from his bank account. If the balance was short—for instance, if Jones hadn’t managed to get 40 hours at his job that week—the bank charged an overdraft fee. The debt had ruined his credit score and he hadn’t had a credit card in years. “They were even taking money I didn’t have,” Jones says. “It was stressing me the hell out.” Along with millions of other Americans, Jones had fallen prey to the for-profit college industry, which is in essence a two-pronged system—federal loans at one end and for-profit schools designed to access those loans at the other.
Former Students of Defunct ITT Tech Receive $95.1 Million Loan Relief | Wall Street Journal
WASHINGTON—The Education Department is providing loan relief to some 7,800 former students of the ITT Technical Institute, with debts totaling $95.1 million being forgiven by the government years after the giant for-profit school chain closed. The department said that it has identified 7,878 former students of ITT Tech as eligible for a program in which loans are discharged automatically within three years of a school closure. Of those borrowers who attended the school, 7,697 had received loan forgiveness as of Jan. 3.
Defrauded college students will no longer be taxed on their canceled loans | Washington Post
Student loan borrowers whose education debt has been canceled because their college closed or engaged in fraud will no longer face a tax bill, relief that arrives as applications for forgiveness continue to grow. On Wednesday, the Internal Revenue Service issued guidance shielding borrowers from having their discharged federal and private loans treated as taxable income. The measure is effective for education loans canceled on or after Jan. 1, 2016. Anyone affected by the new policy may claim a credit or refund for an overpayment of taxes.
Former for-profit college students will have $168 million in student debt cancelled | MarketWatch
More than 18,000 students who attended a now-defunct for-profit college will have $168 million in private loan debt discharged. The loan cancellation is part of a proposed deal between the Consumer Financial Protection Bureau, attorneys general of 43 states and the District of Columbia and Student CU Connect (or the CUSO), a company that held and managed private loans taken out by students at ITT Tech.
Cancel Student Debt, Boost the Economy | Medium
In April, Senator Elizabeth Warren released a bold plan for free public college and debt cancellation. This transformational proposal takes direct aim at some of the deepest inequities in education in America, and it’s funded by her Ultra-Millionaire tax on wealth above 50 million. The plan includes a $50 billion minimum fund for historically Black colleges and universities (HBCUs) and minority-serving institutions, and will make public college tuition-free at both two- and four-year institutions.
Dept. of Education to Cancel $150 Million in Student Loan Debt | NBC News
The U.S. Department of Education announced Thursday it would automatically cancel $150 million in student loans connected to for-profit colleges that closed in recent years. The move was made under an Obama-era policy that a federal judge in October essentially forced U.S. Secretary of Education Betsy DeVos to implement. The story was first reported by Politico.
Former ITT Tech Students Get $600M in Debt Relief from Bankruptcy Judge | Indianapolis Business Journal
While the bankruptcy fight over failed for-profit educator ITT Educational Services continues, the biggest group involved in the legal battle has scored a big victory. In late November, a federal bankruptcy judge in Indianapolis gave final approval to a $600 million settlement that will affect about 750,000 former students of ITT Technical Institute.
ITT Tech Students Score Victory in Bankruptcy Settlement | Washington Post
As creditors of ITT Educational Services fight over the remaining assets of the defunct for-profit college operator, one group has secured a significant victory in the bankruptcy proceedings: former students. On Wednesday, a federal judge gave final approval to a settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement, which was first announced in January, will also refund $3 million that students paid the for-profit chain.
These For-Profit College Students Hope for Debt Relief as a Debate About Their Loans Rages in Washington | MarketWatch
Seth Pontiff has been waiting for three years to hear whether the $80,000 in loans he took out attending ITT Technical Institute — a for-profit college that closed in 2016 amid allegations of false advertising — will be discharged by the government.
DeVos Proposes to Curtail Debt Relief for Defrauded Students | New York Times
Education Secretary Betsy DeVos proposed on Wednesday to curtail Obama administration loan forgiveness rules for students defrauded by for-profit colleges, requiring that student borrowers show they have fallen into hopeless financial straits or prove that their colleges knowingly deceived them.