Students who attended ITT Technical Institute could have $600 million in student loan debt canceled under a new proposed court settlement. The settlement acknowledges that students who attended the college between 2006 and 2016 have a $1.5 billion claim against ITT. This means that if any money is left over from the school’s assets after its bankruptcy, students could receive a portion of it.
Since ITT abruptly closed its nearly 140 campuses nationwide and declared bankruptcy in the fall of 2016, students have been desperate to seek financial relief. Nationwide, ITT Tech had an estimated 35,000 students enrolled in classes.
Last January, a group of students led by the Harvard project, filed a lawsuit claiming that they had a right to ITT’s remaining assets, like any other creditor in a bankruptcy case. They claimed that ITT employed aggressive tactics to recruit them. After recruitment, the students’ allege they were deceived or misled on multiple fronts. This deception included the cost of attendance, the school’s accreditation status, the experience of instructors, and the likelihood of job placement and salaries they would earn after graduation.
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