(WKBN) – Students who lost money when ITT Tech shut down could be getting some back.
On Friday, Attorney General Dave Yost announced a multi-state settlement that will provide nearly $7 million in debt relief to about 870 former ITT Tech students in Ohio.
The settlement is with Student CU Connect CUSO, LLC, a company that offered loans to finance student tuition.
“These students were misled, pressured and sometimes threatened into borrowing from this lender,” Yost said. “They’ve had to carry the heavy weight of these unreasonable loans for far too long, but today they can finally breathe a sigh of relief.”
Yost said ITT Tech, with CUSO’s knowledge, offered students temporary credit when they enrolled to cover the remaining cost after financial aid.
Students’ payments were due before the next academic year, although Yost said ITT and CUSO knew or should have known they wouldn’t be able to pay it by that time.
Yost said most students thought the credit was like a federal loan and wouldn’t be due until six months after graduation. When the payment was due, ITT pressured students into accepting loans from CUSO, Yost said.
He said the interest rates were much higher than they are for federal loans.
ITT threatened to pull students out of class or expel them if they didn’t accept the loan terms, according to Yost.
Former students affected by this will be getting notices, explaining their rights. If you have questions, you can call Attorney General Yost’s office at 800-282-0515.
Nationally, the settlement will provide $168 million for 18,000 students in 43 states.
ITT Tech filed for bankruptcy in 2016.