Scott Statement on Biden’s ED Providing Thousands of Defrauded Borrowers Debt Relief

June 16, 2021
Press Release
ED Approved 18,000 Defrauded Borrower Claims Totaling $500 Million in Relief

As originally released by the Committee on Education & Labor

WASHINGTON, DC – Chairman Robert C. “Bobby” Scott (VA-03) released the following statement after the Education Department announced new categories of borrower defense claims totaling $500 million in relief to 18,000 borrowers. 

“Today’s announcement means that tens of thousands of defrauded student loan borrowers will finally be granted the debt relief that they are legally entitled to receive. It has been more than four years since the Department of Education (ED) first concluded that ITT Tech schools in California defrauded their students. Unfortunately, instead of continuing ED’s work to protect students and taxpayers by investigating ITT Tech’s conduct, the previous administration allowed similar students’ claims to languish. Today, the Department found what we have all known for years: ITT Tech used fraudulent tactics to recruit students at every location across the country.

“For more than four years, defrauded borrowers and their families have lived under a cloud of education debt that they should not have to repay. I applaud the Biden-Harris administration for making these borrowers whole and giving them and their families a second chance at the future they deserve.”

Today’s announcement comes after several congressional hearings, public pleas, and a federal court order. In June 2020, the Committee published a comprehensive oversight report highlighting the previous administration’s mistreatment of defrauded borrowers.

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