Nebraska Part of Multistate Settlement with ITT Tech

Lincoln – Attorney General Doug Peterson an­nounced Monday that his office has secured $1,767,000 in debt relief for 176 former ITT Tech students in Nebraska as part of a settlement with 43 other state at­torneys general.

The settlement will result in debt relief of more than $168 million for more than 18,000 former ITT students in all 50 states and the District of Columbia. The settle­ment is with Student CU Connect CUSO LLC, which offered loans to finance students’ tuition at ITT Tech, the failed for-profit college. ITT filed bankruptcy in 2016, amid investigations by state attorneys general and a move by the U.S. Department of Education to restrict its access to federal student aid.

“As attorney general, I am committed to protecting Nebraska students and their families from institutions that put profit ahead of people,” Peterson said in a news release.

A related settlement between CUSO and the federal Consumer Financial Protection Bureau was announced on June 14.

The attorneys general alleged that ITT, with CUSO’s knowledge, offered students zero-interest, short-term loans upon enrollment and later pressured those stu­dents into accepting high-interest, long-term loans of­fered by CUSO. Many students later defaulted on these loans. 

Under the settlement, CUSO has agreed to cease do­ing business and forego collection of the outstanding loans. CUSO’s loan servicer will send notices to affect­ed borrowers and ensure that all automatic payments are canceled. CUSO must also update credit informa­tion for borrowers with the credit reporting agencies.

Students with questions about their rights under the settlement will receive details by mail.

– Nebraska Attorney General’s Office

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