{"id":5132,"date":"2022-08-17T16:05:10","date_gmt":"2022-08-17T16:05:10","guid":{"rendered":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/uncategorized\/2022\/08\/17\/plan-to-erase-4b-in-itt-student-loans-wont-restore-gi-bill-benefits\/"},"modified":"2026-08-07T20:03:35","modified_gmt":"2026-08-07T20:03:35","slug":"plan-to-erase-4b-in-itt-student-loans-wont-restore-gi-bill-benefits","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/education-transition\/2022\/08\/17\/plan-to-erase-4b-in-itt-student-loans-wont-restore-gi-bill-benefits\/","title":{"rendered":"Plan to erase $4B in ITT student loans won\u2019t restore GI Bill benefits"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">More than 200,000 students who attended classes at <a href=\"https:\/\/www.militarytimes.com\/news\/education\/2019\/06\/20\/thousands-of-veterans-had-education-derailed-when-for-profit-college-chains-abruptly-closed\/\" target=\"_blank\">ITT Technical Institute<\/a> will see their student loan debt erased under plans announced by the <a href=\"https:\/\/www.militarytimes.com\/the-home-front\/2022\/01\/25\/students-scores-in-dod-schools-among-highest-in-the-nation-report-says\/\" target=\"_blank\">Department of Education<\/a> on Tuesday, but the move won\u2019t restore GI Bill benefits for veterans defrauded by the school.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Advocates say that omission is a disappointing footnote in an otherwise important decision to help students victimized by the school.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThese students deserve to have their student loans canceled after having been so misled about the education at ITT, the transferability of credits, and employment after graduation,\u201d said Della Justice, vice president of legal affairs at <a href=\"https:\/\/www.militarytimes.com\/education-transition\/2020\/08\/20\/advocates-warn-gi-bill-students-of-shady-college-recruiting-amid-coronavirus-pandemic\/\" target=\"_blank\">Veterans Education Success.<\/a> \u201cBut it is a total shame that veterans who were cheated out of their GI Bill benefits will not get their GI Bill back.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/veterans\/2019\/06\/20\/thousands-of-veterans-had-education-derailed-when-for-profit-college-chains-abruptly-closed\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"157\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/For-Profit-2-RESIZED.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Thousands of veterans had education derailed when for-profit college chains abruptly closed<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The vast majority of school closures have come from the for-profit sector.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Education officials said the move to dismiss all remaining federal student debt related to ITT loans will provide about $3.9 billion in financial relief to individuals across the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The loan forgiveness applies to students who attended classes from January 2005 to September 2016. The for-profit school had an annual enrollment of more than 40,000 and about 130 campuses across the country at one point, but was forced into bankruptcy after regulators blocked students from using federal loans to attend classes there in 2016.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt is time for student borrowers to stop shouldering the burden from ITT\u2019s years of lies and false promises,\u201d Education Secretary Miguel Cardona said in a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe evidence shows that for years, ITT\u2019s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Federal officials penalized ITT Tech leadership for making false claims about graduates\u2019 ability to find jobs and students\u2019 ability to transfer education credits to other schools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For veterans who used personal loans to pursue degree programs at the school, Tuesday\u2019s announcement means an immediate windfall.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tasha Berkhalter, an Army veteran who spoke at the Department of Education\u2019s announcement, said she accumulated nearly $100,000 in student loan debt because of shortfalls in her GI Bill benefits with ITT\u2019s tuition policies. Veterans like her will now get that money back.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But others who lost tens of thousands of dollars in GI Bill benefits for worthless degrees won\u2019t see similar payouts. Congress did pass legislation in 2017 allowing some students to have those education benefits restored when schools abruptly close, but the measure is only retroactive to 2015.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/education-transition\/2022\/04\/27\/last-minute-fix-allows-major-for-profit-school-to-again-receive-gi-bill-payouts\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP9772919169828070.JPG.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Last-minute fix allows major for-profit school to again receive GI Bill payouts<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Advocates remain concerned about what led up to the approval problem and past operations by University of Arizona Global Campus.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Nearly 12,500 students used the GI Bill at ITT in 2015 alone, according to research from Student Veterans of America. Tens of thousands more used their GI Bill benefits at the school in earlier years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Veterans Education Success officials said members of Congress have discussed restoring GI Bill benefits for more students victimized by poorly-run schools, but no new action is imminent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Department of Education officials said students with lingering federal debts related to ITT will not have to apply for the loan forgiveness. The debts should be automatically erased from their records in coming weeks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additional information on the debt decision is available on the <a href=\"https:\/\/www.ed.gov\/news\/press-releases\/education-department-approves-39-billion-group-discharge-208000-borrowers-who-attended-itt-technical-institute\" target=\"_blank\">Department of Education\u2019s web site<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More than 200,000 students who attended the school will see loans forgiven, but veterans won&#8217;t get their education benefits back.<\/p>\n","protected":false},"author":7,"featured_media":2731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":7,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[101,7,23,93,25,19],"tags":[],"coauthors":[3226],"class_list":["post-5132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-education-transition","category-home","category-middle-column","category-newsletters","category-veterans"],"acf":{"subheadline":"","legacy_arc_id":"OEFDXKAAKBBLTAKNGJ2EDPWSA4","arc_canonical_url":"\/education-transition\/2022\/08\/17\/plan-to-erase-4b-in-itt-student-loans-wont-restore-gi-bill-benefits\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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