ITT Tech Student Loan to cancel millions of loans in multistate settlement

The $ 330 million loan in loans for about 35,000 students, who now participate in the closed ITT Tech, will be canceled to strike a compromise with the Consumer Financial Security Bureau, the attorney general of nearly all 50 states said this week Announced.

Profit college chain ITT Tech filed for bankruptcy in 2016, according to the Ohio Attorney General’s Office, but its alumni still faced high-interest debt payments through private lender PEAKS Trust, which ITT was operated by Tech and affiliated with Deutsche Bank.

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Massachusetts Attorney General Maurya Hayley wrote, “Their strategy was wild – ITT gave students temporary credit for enrollment in the following year.” Twitter. “When some students could not pay, the ITT allegedly kicked them out of the classroom and threatened them if they did not refinance their loans with high-interest PEAKS loans.”

About 600 Massachusetts students received $ 5.6 million in debt relief, Hayley’s office said.

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The Ohio Attorney General’s Office stated, “The default rate on PEAKS loans is estimated to be over 80%, as ITT graduates were employed due to the high cost of the loans as well as the lack of success that the repayment required. It was enough to make it possible. ” Said in a statement. “Defaulted loans affect students’ credit ratings and are usually not discharged in bankruptcy.”

It is not the first colony to provide relief to former ITT Tech students. The state’s Attorney General entered into an agreement with Student CU Connect CUSO in 2019 to cancel millions in loans for more than 18,000 students.

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