Former students of defunct ITT Tech to receive millions in private student-loan forgiveness
Forty-eight state attorneys general and the Consumer Financial Protection Bureau have secured more than $330 million in private student-loan forgiveness for 35,000 former students of ITT Technical Institute.
A judgment order puts to rest a 2014 lawsuit accusing the defunct for-profit chain of steering students into predatory loans. PEAKS Trust, a private loan program run by ITT Tech and affiliated with Deutsche Bank entities, has agreed to forgo the collection of the outstanding education debt from ITT Tech students. It will also ask credit-reporting agencies to delete references to those loans from the credit reports of affected borrowers.
Eligible borrowers will be notified by PEAKS or their loan servicer and need to do nothing to receive forgiveness. At least 1,100 former ITT Tech students in Maryland will receive relief, while 1,840 borrowers in Virginia will have their private loans canceled.