TOPEKA, Kan. Approaching three years since ITT Technical Institute announced it was closing all of its locations across the United States, Kansas Attorney General Derek Schmidt says some financial relief is coming for more than 100 ITT Tech students from the state.
Schmidt says the former students will receive more than $1 million in debt relief as part of a settlement agreement between Kansas and the private lender that was organized to provide loans to students at the failed for-profit college.
The settlement is with Student CU Connect, LLC (CUSO) which Schmidt says, offered loans to finance students' tuition at ITT Tech.
The college filed for bankruptcy in 2016.
"The multi-state settlement, which Kansas joined, will result in debt relief of more than $168 million for more than 22,000 former ITT students nationwide, with 108 Kansans receiving $1,003,007.14 in relief," a Friday news release from Kansas attorney general says.
ITT Tech filed for bankrupt in 2016, "amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict its access to federal student aid."
The settlement says ITT Tech, with CUSO's knowledge, "offered students Temporary Credit (TC) upon enrollment to cover the gap in tuition between federal student aid and the full cost of the education," Friday's news release says. "The TC was due to be repaid before the student’s next academic year, although ITT and the CUSO knew or should have known that most students would not be able to repay the TC when it became due. Many students complained that they thought the TC was like a federal loan and would not be due until six months after they graduated. When the TC became due, however, ITT pressured and coerced students into accepting loans from the CUSO, which for many students carried high interest rates, far above rates for federal loans."
Former Kansas ITT Tech students with questions about their rights under the settlement can go online to visit the Attorney General Consumer Protection Division or call the attorney general’s Consumer Protection Division at 800-432-2310 for more information.