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AG Settles $5.4 Million In Debt Forgiveness For Former ITT Tech Students In Indiana

By Jeanie Lindsay

Posted June 20, 2019

The ITT Technical Institute campus in Canton, Michigan.

The ITT Technical Institute campus in Canton, Michigan, is one of more than 140 locations that closed as a result of the for-profit college chain's collapse. (Dwight Burdette/Wikimedia Commons)

Hundreds of former Indiana students of the for-profit college ITT Technical Institute will receive $5.4 million in debt forgiveness. It’s part of a multi-state settlement involving 44 attorneys general, that will provide a total of $168 million in debt forgiveness to more than 22,000 former ITT Tech students nationwide.

The for-profit college and a student loan provider involved with the school engaged in what Indiana Attorney General Curtis Hill called in a statement “abusive lending practices.”

The group of attorneys general alleged ITT Tech offered a type of credit for students to cover up-front costs, then pressure them into high-interest loan if they could not pay off the credit between school years.

Documents say ITT Tech education credits were largely non-transferrable to most schools, so students were forced to accept the loans and stay at ITT Tech to finish their education, or drop out with debt.

As part of the multi-state settlement, the lending company involved, Student C-U Connect CUSO, LLC, will not collect remaining debt for 602 Hoosier students.

ITT Tech filed bankruptcy after investigations into its loaning practices from multiple states in 2016 and federal sanctions.

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