Nearly three years after ITT Technical Institute announced it was closing all of its locations in the United States, Kansas Attorney General Derek Schmidt said financial aid was being provided to more than 100 ITT Tech students of State.
Schmidt says 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 arranged to provide for-profit college student loans bankrupt.
The settlement is with Student CU Connect, LLC (CUSO) which Schmidt said offered loans to fund student tuition at ITT Tech.
“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 dollars in relief,” a press release from the Kansas attorney general said Friday.
ITT Tech filed for bankruptcy 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 states that ITT Tech, to CUSO’s knowledge, “has offered students a temporary credit (TC) upon enrollment to cover the tuition gap between federal student aid and the full cost of education,” Friday’s press release said. “The TC was to be repaid before the student’s next academic year, although ITT and CUSO knew or should have known that most students would not be able to repay the TC when it came due. Many students complained that they thought the TC was like a federal loan and would only be due six months after graduation. When the TC came due, however, ITT pressured and coerced students into accepting CUSO loans, which for many students carried high interest rates, well above federal loans.”
Former Kansas ITT Tech students with questions about their rights under the settlement can go online to visit the
or call the Attorney General’s Consumer Protection Division at 800-432-2310 for more information.