Former ITT students in Indiana to receive $ 10 million debt relief

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INDIANAPOLIS – More than 1,000 students enrolled at the now-closed ITT Technical Institute campuses in Indiana are eligible for nearly $ 10 million in student loan forgiveness, the Attorney General of the state.

Indiana’s share in a $ 330 million nationwide settlement follows investigations by several attorneys general into student loans offered by the for-profit school. Attorney General Curtis Hill said 1,354 former Indiana students would benefit from debt settlement .

The 47 attorneys general and the Consumer Financial Protection Bureau reached an agreement with PEAKS Trust, which managed a private loan program for ITT Tech. According to the agreement, PEAKS admitted to forcing students to take out high-interest loans, agreed to cancel outstanding loans and to end operations.

“This regulation ensures that alumni of the ITT Technical Institute are no longer subject to the abusive lending practices of PEAKS Trust,” Hill said in a statement. “We hope this result alleviates the financial stress that so many former students have undoubtedly endured.”

ITT Tech filed for bankruptcy and closed its campuses in 2016, including in Indianapolis, South Bend, Fort Wayne and Newburgh. The university chain’s parent company, ITT Educational Services Inc., was based in Carmel.

Curtis said the students didn’t have to do anything to receive help.

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