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Loan relief granted to defrauded for-profit college students

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(AP) -- The U.S. Education Department says it's erasing student debt for thousands of borrowers who attended a for-profit college chain that exaggerated its graduates’ success in finding jobs.

The Biden administration is approving 18,000 loan forgiveness claims from former students of ITT Technical Institute, which closed in 2016.

The loan discharges will clear more than $500 million in debt.

The move announced Wednesday marks a step forward in the Biden administration’s effort to clear a backlog of claims in a program providing loan forgiveness to students defrauded by their colleges.

Many students said it was harder to find jobs when they listed ITT Tech on their resumes.

Borrower advocates applaud the loan forgiveness.

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Associated Press

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