CARSON CITY — More than $3 million in debt relief is slated for hundreds of former ITT Tech students in Nevada as part of a multistate settlement, Attorney General Aaron Ford’s office announced Friday. .
Nevada and 43 other states and territories agreed to the settlement with Student CU Connect CUSO, which offered student tuition loans for ITT Tech. A total of 335 former ITT Tech Nevada students will receive approximately $3.4 million in collective debt relief as part of the settlement.
“Education should be the path to success, not a scam,” Ford said in a statement. “These students thought they were pursuing their careers, only to be subjected to abusive lending practices to pay for an education at a bankrupt institution. I am proud that my office secured much-needed financial assistance for hundreds of Nevadans through this regulation.
Attorneys general alleged that ITT Tech was offering students a temporary credit once they were enrolled to cover gaps between federal student loans and the full cost of tuition. This credit was supposed to be repaid before the start of the next school year, but the attorneys general argued that ITT Tech and CUSO knew or should have known that repayment of this credit would not be possible for most students.
CUSO has agreed to waive collection of the outstanding debt, according to Ford’s office.
ITT Tech filed for bankruptcy in 2016 after the US Department of Education banned the school from enrolling students who receive federal aid.
Contact Capital Bureau Chief Colton Lochhead at [email protected] or 775-461-3820. To follow @ColtonLochhead on Twitter.
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