WEST SENECA, N.Y. (WIVB) – The sudden closing of ITT Technical Institutes two weeks ago blindsided thousands of students, leaving many of them with big loans and tough choices.
Those students who borrowed money to pay for classes–if the loans were backed by the government–can actually apply for loan forgiveness. But if those loans are forgiven it would wipe out the credits they earned.
So before taking that path, experts advise those students to check with area colleges to see if they will accept some of the credits they earned at ITT. Consumer Credit Counseling Service of Buffalo is offering to help those former students weigh their options.
Counselor Noelle Carter said students need to do the math and decide if seeking loan forgiveness will be to their advantage, “While a loan discharge could seem appealing because essentially those loans that you took out would be wiped out and forgiven, you are losing all the credit hours and the time that you put in at the college.”
Carter said students who have earned a substantial number of credits toward graduation might want to keep their credits, and hold onto their loans.
“If you were half the way, or close to finishing your degree, you may want to consider transferring those credits as opposed to applying for the loan discharge.”
But Carter cautions, students who got private loans might not have the option of getting their the loans discharged, and that veterans are also in a tough spot.
If they used their GI Bill benefits, they can’t get them back, but Congress is considering amendments to the GI Bill that could change that. Consumer Credit Counseling Service is located in West Seneca, and can be reached by calling, 716-712-2060, or log onto the CCCSB website.