A $330 million settlement has been reached during a lawsuit against ITT Technical Institute’s student loan servicer that’s expected to forgive 35,000 students of their debts. The U.S. Consumer Financial Protection Bureau filed the itt tech lawsuit against PEAKS, the name of the ITT student loan program, Tuesday, the same day the settlement and resulting loan forgiveness was reached.
ITT developed a thought with PEAKS to provide students temporary credit to cover the gap in tuition between federal student aid and thus the complete cost of the education. Under the settlement, PEAKS has agreed that it’ll forgo collection of the outstanding loans and cease doing business. PEAKS will send notices to borrowers about the cancelled debt and confirm that automatic payments are cancelled. The settlement also requires PEAKS to supply credit reporting agencies with information to update credit information for affected borrowers.
The action against the ITT loan program alleged “aggressive” and “high pressure tactics” during a revenue-generating scheme bilking some $330 million from an estimated 35,000 students, despite knowing default risks.
“ITT knew that tons of scholars ultimately placed into ITT Private Loans were likely to default,” the CFPB said.
The CFPB specifically cites ITT Technical Institute’s cash receipts reported in 2011, which showed 89% of its tuition came from federal loans, with 7% coming in from private loans, leaving a 45 shortfall. whilst students began defaulting in great numbers around 2011, ITT Tech continued issuing the high-cost loans. The tactics landed the company’s administration within the crosshairs of the Securities and Exchange Commission. The agency settled fraud cases in 2018 against former ITT chief executive Kevin Modany and former chief treasurer Daniel Fitzpatrick for allegedly deceiving investors about high rates lately payments and defaults on student loans backed by the company .
ITT Tech student loan forgiveness via Borrowers Defense program
BDR program is considered one of the most popular student loan forgiveness program which could provide a considerable contribution to you for eliminating your massive loan debts. To qualify for this program, all you are going to need is proving that you have experienced a defrauded activity by the school you have attended. In our case, you are going to need to show that you have been deceived or mislead by the ITT Tech college which that caused you to take a student loan to attend the college.
If we take into consideration, the fact keeps in mind that ITT Tech alleged for deceptive business practices such as releasing false statements and misleading reports about students. If we take into consideration of these facts which is directly from the ITT Tech Class Action Lawsuit, from you, have a significant advantage to use them against the college to support your ITT Tech BDAR application.
Remember, application for Borrowing Defense to Repayment program is strictly regulated legal process. That is why if you think that you do not meet the requirements of eligibility criteria, don’t waste your time for just trying it out your chance. However, if you think you cover the conditions to qualify, then there is no need to lose time on the way of sending your application. It is because, as we mentioned earlier, getting approval from the Department of Education may take a long time.
ITT Tech Student loan forgiveness via Closed School Student Loan Discharge
Another way to get rid of your outstanding student loan debts is applying for Closed School Student Loan Discharge. Through this program, the borrower has a great chance to eliminate your debts fully or partially. Even if you get lucky, you can receive specific reimbursement on the amount that you have already paid to the college.
Closed School Student Loan Discharge provides the full amount of forgiveness for the different types of credits such as Direct Loans, Perkins Loans, and Family Education loan. To be eligible, you are required to be attending to the ITT Tech college before the school shut down. Otherwise, if you have withdrawn from the school within four months after the college closed, then you might qualify for the ITT Tech loan forgiveness through the Closed School Discharge program.
You can download the application form through the link of the official website of Federal Student Aid. After you complete the application, you need to send it to your lender and wait for a response. It may take time to get approval but when your request gets received, you will a very long shot by wiping out thousands of dollars on your debt balance.
What are the illegal activities that ITT Tech has done?
We can classify the general claims and complaints against the college in the following way. Pay attention whether you have personally experienced any of them, and if you have, then use it to support your claim on your ITT Tech BDAR application.
Telling lies about ITT Tech Accreditation
Releasing false reports about job placement rates
Inaccurate information about credits to be transferred
According to the ITT Tech Class Action Lawsuit, the company alleged for using unlawful acts to attract more students and increase its revenues.