Lender to disburse $5.1 million in debt relief after 'deceiving' ITT Tech students

Over 500 former ITT Technical Institute students could be getting money back after a state investigation found one of the college’s lenders issued loans it expected could default.

Attorney General Bob Ferguson announced the agreement Friday after an investigation into Student CU Connect LLC. CUSO has agreed to disburse $168.2 million in student loans, $5.1 million of which will go to Washington students.

"ITT Tech and CUSO were only interested in increasing their bottom line at their students' expense,” Ferguson said in a statement. “They issued private loans they knew students could not afford in order to access their federal loan dollars. This was a scam, and students deserve this relief."

A total of 538 former ITT Tech students in Washington will receive payment. On average, students will receive $6,096 in debt relief, according to the attorney general’s office. All affected students will be contacted by mail within 30 days.

CUSO also agreed to forego collections on current and defaulted private student loan balances.

ITT Tech closed 149 campuses in 2016, including locations in Seattle and Everett.

https://www.msn.com/en-us/money/news/lender-to-disburse-dollar51-million-in-debt-relief-after-deceiving-itt-tech-students/ar-AACTvs7