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Legal settlement relieves former ITT students of loan debt

Posted at 4:34 PM, Jun 18, 2019
and last updated 2019-06-18 18:37:33-04

DENVER (AP) — A legal settlement has wiped out loan debt for Colorado students formerly enrolled at a for-profit college.

The Denver Post reported Monday that the Colorado Attorney General's office announced a settlement Friday wiping out $1.6 million in loans to former ITT Educational Services students.

The federal Consumer Financial Protection Bureau says ITT offered students "temporary credit" loans to be repaid within nine months and then pushed them into high-interest loans many could not afford to repay.

ITT filed for bankruptcy and closed its 100 campuses in September 2016.

Officials say the settlement requires Student CU Connect CUSO, which manages the loans, to stop attempting to collect repayments.

The settlement applies to 168 borrowers who filed complaints in Colorado, along with borrowers from 42 other states and the District of Columbia.