Update | CFPB and States Settlement with Private Loan Lender to Cancel Millions of Dollars in Student Loan Debt
As Betsy DeVos and the Department of Education issue blanket denials on borrower defense applications to former ITT students, the CFPB and a group of 44 states and the District of Columbia filed proposed settlements with one of ITT’s private lenders, known as PEAKS.
The Latest Reports on Betsy DeVos Scamming For-Profit College Students | Blog
ITT and Corinthian Borrowers Continue to Fight for Relief as the Department of Education Skirts the Law Every Step of the Way
ITT Trustee, CFPB, and States Settle with Private Lender to Eliminate Millions in Debt | Blog
Settlements Do More for Cheated ITT Students Than DeVos As Betsy DeVos and the Department of Education continue to sit idly, indifferent to massive fraud committed by ITT against more than 750,000 former students, the CFPB and a group of 44 states and the District of Columbia filed proposed settlements with one of ITT’s private…
Update | ITT Bankruptcy Settlement Does More for Cheated Students Than DeVos
When the final order of the ITT bankruptcy settlement became effective this month, the court approved cancellation of every dollar of student debt held by the for-profit college and allowed the students’ $1.5 billion claim as unsecured creditors.
Update | ITT Students’ $1.5 Billion Bankruptcy Settlement Approved by Judge
On Wednesday, November 28, the judge in the ITT bankruptcy case gave final approval to the settlement between the student class and the estate of ITT. The settlement is a big victory for former ITT students who were defrauded by the school and provides important relief.
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.
Update | January 30th ITT Bankruptcy Hearing
On Monday, January 30, the judge in ITT’s bankruptcy granted former ITT students’ request that they be recognized as having filed a group claim despite the trustee’s objection, and recognized the Legal Services Center of Harvard Law School as students’ counsel for this initial stage of their case.
Update | New York Times Calls Former ITT Students’ Legal Action ‘Gratifying’
“It seems only right that victims of predatory for-profit education companies should have their student loans forgiven,” the article begins. It goes on to discuss the validity of students’ claims, their difficulty in getting debt relief, and the thousand of pages of “powerful testimony” submitted with the students’ complaint. As the article explains, the evidence shows “a pattern of practice that dispels any notion that bad behavior harmed just a handful of ITT students.”