The higher education industry was rocked last month when the for-profit ITT Technical Institute chose to close its doors permanently and cease operations after the U.S. Department of Education decided to ban the vocational college from enrolling students who receive federal aid. The news was particularly surprising considering ITT had been in business since 1969, operating more than 130 campuses in nearly forty states. The college has however come under scrutiny because of its accounting and recruiting practices.
If you attended ITT Tech, you may be eligible for student loan forgiveness and/or having your Federal Direct Loans, Federal Family Education Loan (FFEL) Program loan, or Federal Perkins loan discharged due to being unable to complete your studies because of the closure. However, if you transferred credits to another college you are not eligible. Keep in mind that per the program guidelines, loan amounts forgiven would be treated as taxable income, which could mean a considerable tax burden.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.