176 ITT Tech Alumni in Nebraska to Share $ 1.76 Million in Settlement Debt Relief | Education
LINCOLN – State Attorney General Doug Peterson announced Monday that 176 former students of the ITT Technical Institute of Nebraska will share more than $ 1.76 million in debt relief under a multi-state settlement agreement.
Under the settlement, CUSO, a company set up to handle private loans for ITT students, agreed to cease operations, stop collecting all outstanding loans, and ensure all automatic payments are canceled. The regulations also require CUSO to update the credit information of affected borrowers.
ITT filed for bankruptcy in 2016, amid investigations by state attorneys general and a decision by the US Department of Education to restrict its access to federal student aid.
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Attorneys General alleged that ITT, to CUSO’s knowledge, offered students short-term interest-free loans upon enrollment and subsequently pressured students to accept long-term loans. high interest term offered by CUSO. The vast majority of students subsequently defaulted on these loans.
A related settlement between CUSO and the US Consumer Financial Protection Bureau was announced on June 14.
Students with rights under the regulations will receive further information by mail.
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