Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A proposed settlement would effectively cancel $560 million in private student loans burdening former students of the now-bankrupt ITT Technical Institute.
The settlement was negotiated by a group of former students who intervened in the ongoing ITT Tech bankruptcy proceedings.
Represented by Harvard University’s Project on Predatory Student Lending, the students argued ITT Tech fraudulently induced them into taking on excessive debt, giving them claims they can now assert as bankruptcy creditors.
The students seek to represent a Class consisting of hundreds of thousands of other former students who attended ITT Tech between at least as early as 2006 and the time the school closed in 2016.
If approved by the court, the settlement would bar the bankruptcy trustee from collecting, assigning or transferring about $560 million in debt that originated in loans ITT Tech made directly to students. These loans were typically made to cover the gap between total school costs and the funds otherwise available to each student.
The bankruptcy estate would also have to refund about $3 million in loan payments received since the bankruptcy began.
In total, the settlement recognizes a class claim of $1.5 billion against each of the bankruptcy debtors’ estates – significantly lower than the $7.3 billion originally asserted in the class proof of claim. A letter from the students’ attorneys says they will continue to seek cancellation of all ITT Tech-related student debt.
The court is expected to make a decision on settlement approval by the end of this month.
The Consumer Financial Protection Bureau sued ITT Tech in February 2014. According to the CFPB, ITT Tech lured students into debt using false or misleading statements about the schools’ accreditations, job placement rates, and transferability of credits. The schools allegedly induced students into taking out high-interest loans that they had little or no chance of repaying.
ITT Tech fought the CFPB’s lawsuit for several months with little success. After a federal appeals court declined ITT Tech’s petition for an interlocutory appeal, the company closed all of its nearly 140 campuses and initiated bankruptcy proceedings.
The student group intervened in the ITT Tech bankruptcy proceedings in January 2017 with a class action adversary complaint. Plaintiffs Jorge Villalba, James Eric Brewer, Joshua Cahill, Juan Hincapie and Cheryl House, all former ITT Tech students, alleged they were misled into over-borrowing for an education that did not provide them the benefits they were reasonably led to expect.
Attorneys for the students are encouraging other former ITT Tech students to file an individual proof of claim if they wish to participate in the proceedings and believe they qualify. If the student’s proposed Class is approved by the court, all other student’s claim will be incorporated into the Class claims and litigated by the attorneys representing the Class.
The ITT Tech Fraudulent Student Debt Class Action Lawsuit is part of the ITT Tech bankruptcy proceedings, In re: ITT Educational Services Inc., et al., Case No. 16-07207-JMC-7A, in the U.S. Bankruptcy Court for the Southern District of Indiana.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
Honda, Hyundai, Kia, Subaru vehicle data collection class action lawsuit investigation
May 17, 2024 | Legal News
233 thoughts onITT Tech Students Negotiate $560M in Student Loan Cancellation
I’ve paid my entire loan amount off after being garnished for years. How do I go about getting reimbursed for the money and interest accrued that I paid in?
Thxz
How do I get help if I attended this school for my private loans please anyone guide me
Went and got the wrong Degree, not the one I wanted, was doing the Bachelor’s for the Degree I got, when ITT Tech went out of Business.
I attended ITT-TECH from 06/06 – 06/10. I was told our degree is accredited and credits could be transferred. I was also misled into believing once I graduated from ITT-Tech, their career services department has “ins” with many companies (including Law Enforcement) to assist with getting those jobs. I was told they will hire someone out of their program before they hire someone with out a degree because they have a partnership. This was very believable. I graduated top 3rd in my class and was very proud.
Once I graduated and began the hiring process my degree was not even accepted because it is not an accredited degree. This for profit collage pulled out student loans in my name for their benefit where I got shafted in the end with a piece of paper that is literally worthless.
I was even told by our Dean & instructors that the ITT-Tech Criminal Justice program was the exact same education as John J. University. When you hear things like this it makes you proud that you can go to this college and get a great education that will take you far in life. All this has done for me is put me in debt, has put my career on hold because these student loans are killing my credit.
I get grilled by background investigators regarding these loans and why I am not paying them. The repayments were in the amount of over $1400 a month after the consolidation. There was no way I could make those payments and pay rent and pay for a baby. There is just no way. These loans have not allowed me to get the career I belong in. Please Help.
Where do we get help I been looking and get no reply
I attended ITT Technical Institute at 13500 Powers Ct Ste 100, Fort Myers, FL 33912 between 06/14/2014 and 06/05/2016 which closed down right after I graduated. One of the major reasons I would like to apply for federal student loan discharge is that the staff at ITT Technical Institute promised me, among many other students, job placements for life through their career services program and continually told us about high salary jobs they would be getting us once we were through their program.
I was told when initially inquiring about the program that they guaranteed job placement in our field once the program was finished however I never received any such service and then the entire schooling program shut down nation wide. From what I now understand, these were completely false claims used to increase the enrollment official’s sign-up rates and nothing else.
As of today, 12/14/2018 I still have not found any work in my field and have even been told by Teradata in California that they will not even consider applications from ITT Technical Institute.
The “teachers” at ITT Technical Institute didn’t even know what they were doing half the time and other students would come to me asking for help with their projects because the teachers simply could not explain resolutions to their problems. All of the so-called professors there were simply low-paid local “industry professionals” who thought they could make some money on the side teaching kids about the programs which fell far short of an education every single semester.
I graduated ITT Technical Institute as the valedictorian with highest honors and a 3.97 GPA and I could have taught every single one of my courses better than these contracted “teachers.”
What course of action can I take? I’ve sent a contact request about it to http://www.legalservicescenter.org/category/predatory-lending-clinic/project-on-predatory-student-lending/itt-bankruptcy/ but I am now buried in student loan debt with no chance of being able to pay them off. I am constantly looking for jobs in my field through recruitment websites, social networking including Linked In and word of mouth but there is literally no chance of getting a job in my field even when searching nation wide because companies laugh at a degree from ITT.
My son attended ITT and has student debt around $75,000 for a degree that he never received. He was attending his last classes when the school closed. He never officially received his degree from the school and has not been able to get a job in that industry (cad design). How do we find out any information regarding the lawsuit to help eliminate the massive student debt he has? Thank you!
I went to ITT Technical Institute from 2002-2004 and graduated with an associate’s degree. It cost me jobs going here bc they were teaching with bootlegged older programs. Main program was AutoCad 2000i which was from 2000 and it made me obsolete immediately….. Any hope for me and getting rid of this burden???? The degree is no longer useful… And I still have copies of the book ….
What can I do to get 46,000 of student loan off my back. Can’t even get a job since my certificate is a joke to everybody I get an interview from.. And I still have to pay.. Is just not fair..
I attended ITT Tech in Owings Mills, Md in 2014 through 2016. And, after I completed the 1st semester of my Bachelors Program and while on semester break I recieved a phone call from one of my classmates telling me that ITT Tech had close and don’t even come to class. I didn’t believe it so, I went up to the school anyway to find the doors where locked. And, there was no one to explain anything to me.
Eventually, I received an email that explained nothing of the already nothing that I did’t know. I said to myself, “what about my education” ??? And, now I’m stuck with a $50,000 debt that I can’t pay nor do I feel is in line with what I was informed of the cost of each semester.
I very much would like to be added to the list of students in this lawsuit. It is not fair to any of us to have been mislead. When, just about 3 months prior we attended a meeting and the school staff (faculty) told us that all rumors of lawsuits against ITT Tech were false. and there was need for concerns.
So, if there is information you can provide me to point me in the right direction in joining this lawsuit and/or debt relief it would be most appreciate. And, I can be reached by the contact information provided. I thank you for anything information you can provide.
Thank you!
Derek Anderson