The Ninth Circuit’s July 17, 2026 ruling rejected the Department of Education’s appeal in Sweet v. McMahon. Here’s who gets automatic discharge and who doesn’t.
Sweet v. McMahon borrower defense deadline is April 15, 2026. Here’s who qualifies for automatic student loan discharge and exactly what to do now.
Quick Answer: Former ITT Tech students can get federal student loan forgiveness by filing a Borrower Defense to Repayment application with the Department of Education. Recent court cases have resulted in complete loan forgiveness plus refunds of previous payments for ITT Technical Institute attendees.Question:Dear Steve,I attended ITT tech in 1995 but didn’t finish. I only …
Quick Answer: DeVry University is a legitimate but problematic institution that made widespread misrepresentations about job placement rates, leading to $71.7 million in federal loan discharges for approximately 1,800 former students. The U.S. Department of Education will seek to recoup these costs from DeVry while reviewing additional pending claims.Nearly 16,000 borrowers will receive $415 million …
Quick Answer: The DOE’s Borrower Defense to Repayment program for defrauded students has created a massive backlog, with over 225,000 of 290,000 applications pending as of November 2019. Internal memos reveal that DOE staff recommended full loan forgiveness for students defrauded by defunct schools like Corinthian Colleges and ITT Technical Institute, but these recommendations were …
Quick Answer: ITT Technical Institute was involved in fraudulent practices, as evidenced by their 2015 SEC fraud case settlement for concealing poor performance of student loan programs. The for-profit college chain misled both students and investors about their risky PEAKS and CUSO loan programs before ultimately closing down.ITT Technical Institute finally settled their fraud case …
Quick Answer: ITT Tech graduates with federal student loans may qualify for loan forgiveness through the Borrower Defense to Repayment program after the school’s closure. The distinction between federal and private loans is crucial, as private loans have fewer relief options than federal loans serviced by companies like Navient.Question:Dear Steve,I graduated ITT in 2009 and …
The Indiana Lawyer has a fantastic article about the unintended consequences that the bankruptcy filling of ITT Educational Services.“Among the fallout from the ITT Educational Services bankruptcy are the multiple pallets being offloaded every weekday into a chilly warehouse south of downtown Indianapolis.Each of the wooden pallets is stacked with 40 Bankers Boxes containing 20-30 …
Quick Answer: The advisor recommends not defaulting on ITT Tech private student loans without a concrete plan, as private loan discharge options are extremely limited even when schools close for fraud. While federal loans offer closed school discharge protections, private lenders typically aren’t required to forgive debt regardless of the institution’s misconduct or closure.Question:Dear Steve,I’m …
Quick Answer: ITT Tech loan forgiveness is real for students enrolled or who withdrew after May 8, 2016, when the school closed permanently in September 2016. Eligible students can apply for Closed School Discharge through their loan servicer, but transferring credits or completing a teach-out program eliminates eligibility.ITT Technical announced in September 5, 2016 they …
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