Over $7.5 million in debt relief secured for former WI ITT Tech students
MADISON, Wis. (WMTV) - Attorney General Josh Kaul secured over $7.5 million in loan debt relief Tuesday as part of an agreement for former ITT Technical Institute students in Wisconsin.
The attorney general’s office worked with 48 attorneys general and the federal Consumer Financial Protection Bureau in order to receive the funds for 1,137 loans in the state.
About 35,000 borrowers will receive about $330 million in loan forgiveness, nationally.
ITT Tech filed for bankruptcy in 2016 following investigations across the country and following action by the U.S. Department of Education to restrict their access to federal student aid.
“For-profit colleges and associated private lending programs that use predatory tactics can cause long-term harm to the students they claim to be helping,” said AG Kaul.
The agreement is with PEAKS Trust, a private loan program run by the for-profit college and affiliated with Deutsche Bank entities. PEAKS was formed after the 2008 financial crisis when sources for private loans ran out.
The private-loan company agreed to forgo collecting the outstanding loans and will cease doing business, the AG’s office added.
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