ITT Technical Institute, Daniel Webster College bankruptcy class action settlement

Former ITT Technical Institute or Daniel Webster College students could benefit from a settlement related to ITT’s bankruptcy filing and may now update their information with the ITT student claim settlement administrator.

This settlement benefits individuals who attended ITT Technical Institute between Jan. 1, 2006, and Sept. 16, 2016, or Daniel Webster College between Jan. 1, 2009, and Sept. 16, 2016. According to the settlement website, there are around 450,000 who qualify for this student class.

ITT Technical Institute and Daniel Webster College were for-profit colleges run by the same company. However, according to the Project on Predatory Student Lending, from the Legal Services Center of Harvard Law School, ITT students may have been taken advantage of by the school’s lending practices. 

According to a 2022 report from the Project on Predatory Student Lending, ITT got students to enroll in its programs based on false promises that the students could get good jobs in growing fields. 

These false claims allegedly tricked students into applying for student aid to attend ITT schools — allowing ITT to reap the benefits.

“In the end, the vast majority of students who attended ITT either never received a degree or were left with a useless degree,” the ITT report states.

“All they had to show for their investment were exorbitantly high student debt and the inability to repay it — and, perhaps most devastatingly, opportunities forever lost.”

In September 2016, three ITT companies (ITT Educational Services Inc., ESI Service Corp., and Daniel Webster College Inc.) filed for Chapter 7 bankruptcy and closed the schools. 

Students at these locations who hadn’t graduated were offered the option to apply for closed student loan discharge or transfer their credits to another institution, according to StudentAid.gov.

In 2017, former students filed a class action lawsuit to assert their claims in these proceedings. In February 2022, the bankruptcy court approved a plan to distribute some of the money from ITT’s bankruptcy estate to former students.

Under the terms of the distribution, Class Members can receive a cash payment. Payment amounts may vary based on the funds available and the number of Class Members who choose to participate, but the bankruptcy website anticipates initial payments will range from $10 to $100.

Class members who received a notice from the ITT bankruptcy student claim settlement can update their information with the settlement administrator by June 7, 2022. 

Class members who do not update their information will not be eligible for the July 7, 2022 disbursement date. Their money will be reallocated to the next distribution.

Those who did not receive a notice but believe they should be included in the settlement can alert the ITT student claim settlement administrator by submitting a request for inclusion on the settlement website.

Who’s Eligible

This settlement benefits individuals who attended ITT Technical Institute between Jan. 1, 2006, and Sept. 16, 2016, or Daniel Webster College between Jan. 1, 2009, and Sept. 16, 2016. According to the settlement website, there are around 450,000 who qualify for this student class.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Update Information Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Update Information Form Deadline

06/07/2022

Case Name

ITT EDUCATIONAL SERVICES, INC. et al., Case No. 16-07207-JMC-7A, in the U.S. Bankruptcy Court for the Southern District of Indianapolis Division

Final Hearing

Unknown

Settlement Website

ITTStudentClaimSettlement.com

Claims Administrator

American Legal Claim Services
info@ittstudentclaimsettlement.com
800-789-4306

Class Counsel

JENNER & BLOCK LLP

Defense Counsel

FAEGRE DRINKER BIDDLE & REATH LLP