Settlement Provides Loan Relief For Former ITT Students
(Image from ITT Tech)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAttorney General Curtis Hill’s office says it has secured a deal for $5.4 million in debt relief for more than 600 former ITT Tech students in Indiana. The agreement is part of a $168 million multistate settlement involving more than 22,000 former students of the former for-profit college shut down operations in 2016.
The school had faced high-profile troubles for years. The Consumer Financial Protection Agency in 2014 filed a suit claiming ITT participated in predatory lending practices. In 2016, the U.S. Department of Education banned the school from receiving federal financial aid for failing to meed accreditation standards.
The settlement is with Student CU Connect CUSO, which provided about $168 million in loans to ITT students between 2009 and 2011. The deal is contingent on approval from the Federal Consumer Financial Protection Bureau.
The group of attorneys general argued that ITT and Student CU Connect offered Temporary Credit loans that they knew students would not be able to pay when they became due. Under the settlement, CUSO, which was formed to provide the ITT loans, says it will not pursue collection of the outstanding loans and cease operations.