Villalba et al. v. ITT
On January 3, 2017, a group of former ITT Tech students filed claims in ITT’s bankruptcy proceedings in the Southern District of Indiana. They sought to act as representatives of hundreds of thousands who have been defrauded by ITT. The students filed over a thousand pages of first-hand accounts from students who attended ITT, affidavits from several whistleblowers, and evidence developed in state and federal law enforcement investigations in addition to their legal documents. Along with the students, the CFPB, and multiple state attorneys generals are parties in the bankruptcy proceedings.
Information for Former ITT Students
If you are a former student of ITT Tech, please visit this page for information and to sign up for updates.
ITT Tech was one of the country’s largest for-profit college chains. Over the past decade alone, it took in over $11 billion in revenue, 98% of which came from tuition, and 76% of which came from federal student aid. Headquartered in Carmel, Indiana, it grew at incredible rates after becoming a publicly traded entity in 1999, and came under increasing scrutiny for its recruitment practices. ITT was featured prominently in the Senate HELP Report of 2012, which detailed consumer fraud and misuse of federal funds at many for-profit colleges around the country. By the time it declared bankruptcy in late 2016, ITT had been subject to lawsuits by numerous state and federal enforcement agencies, as well as multiple whistleblowers
In 2016, the Department of Education cut off federal student aid to ITT. Because almost all of ITT’s revenue came from federal student aid, it declared bankruptcy weeks later. Despite extensive evidence of illegal behavior, the Department of Education continues to collect on the federal student loans that funded ITT’s fraud.
Update | ITT Students’ $1.5 Billion Settlement Heard by Judge In Bankruptcy
Today, former ITT students proposed a $1.5 billion settlement claim in bankruptcy court that would cancel more than $500 million in debts. All participants in the case and members of the class have until April 24 to submit their views of the settlement with the court before it is heard for final approval on June 13. This is good news for former ITT students, but there is still a long way to go.
Update | Proposed Settlement to be Heard January 24
A year ago former ITT students filed a complaint against ITT and a class Proof of Claim in the ITT bankruptcy case. In this last year we have worked hard to fight on behalf of the Student Class, including urging the Trustee to stop collection on all debt owed directly to ITT.
Update | ITT Trustee to Stop Collection on All “Temporary Credit” Accounts
On May 18, the court overseeing ITT’s bankruptcy case approved a motion to stop collection on all ITT “Temporary Credits.” ITT used unfair and deceptive tactics to get students to sign up for Temporary Credits, including by describing Temporary Credits as grants and threatening to expel students if they did not agree to the debt. Even after ITT filed for bankruptcy, its servicers and debt collectors continued to harass students to collect these Temporary Credits.
“One employer told me that he had plenty of applications from potential candidates that had ITT Tech on their resume and that he would immediately discard those applications because he didn’t consider ITT Tech a real college.”
Former ITT Tech Student
“After graduating from ITT, I struggled with the stigma of having their name on my resume and I have gotten further with certifications than with having my degree on my resume. I have found that when ITT is mentioned most employers will frown upon it because of the previous employees they have had from ITT.”
Former ITT Tech Student
“When I graduated they made it seem like they would help me find a decent job. When in fact all they would help me get was jobs through a temp agency. When I started work I worked next to a kid who didn't even have a high school diploma. Made it seem like I wasted my time going to school I could have got the job with out them."
Former ITT Tech Student
This lawsuit filed in ITT’s bankruptcy seeks to establish the liability of ITT for consumer protection and contract violations against the class of students who attended ITT over the past ten years. The Complaint seeks to establish ITT students as creditors of the ITT bankruptcy estate. The students are asking for a legal finding from the bankruptcy court that ITT engaged in widespread consumer protection violations against students, which could create a path to debt cancellation for students’ federal student loans. The Complaint also asks for an injunction against the continued collection of certain ITT student loans, including debts allegedly owed to ITT and to private lenders who are functionally alter-egos of ITT...
Declaration Describing Student Testimony
The student testimony was collected from ITT Tech students via the Debt Collective’s online tool for creating and submitting Defense to Repayment applications. This web-based application launched in March of 2015. By November 1 2016, over 2000 students had used it to present claims to the Department of Education about ITT’s wrongdoing, and these 29 exhibits demonstrating common student claims are drawn from their testimony...
Declarations Attached to Adversary Complaint
Two additional sets of declarations and exhibits were filed along with the Complaint. One presents documentation of some of ITT’s most egregious recruiting and financial aid practices and trainings, as well as its extraordinary cost. The other presents sworn testimony (affidavits) from a number of former high-level ITT employees and others knowledgeable about its practices.
On ITT and the Education Department, No More Excuses [Op-Ed] | The Washington Post
For years, predatory for-profit colleges have exploited the promise of higher education, cheating students and leaving them in mountains of debt they never should have had. Making it worse, the industry has been enabled by a Department of Education that has made excuse after excuse about why it can not step in to help students.
Students from Defunct ITT Tech Get a Shot at Claiming School’s Remaining Assets | The Washington Post
A federal judge approved a settlement Wednesday allowing former students at ITT Technical Institute to participate in the bankruptcy proceedings of its parent company, giving them a shot at the remaining assets of one of the nation’s largest for-profit college operators.
Bankruptcy Court Settlement Could Bring Relief to Some ITT Students | The Boston Globe
Thousands of students nationwide who attended the now-defunct ITT Technical Institute would have nearly $600 million in loans canceled under a proposed court settlement, a significant win for consumers in Massachusetts and elsewhere who have long claimed that the for-profit chain defrauded them out of money and an education.