Kansas ITT Tech alumni will receive more than $ 1 million in student loan debt relief

TOPEKA, Kan. Kansas Attorney General Derek Schmidt announced in the next three years that ITT Technical Institute has announced the closure of all its facilities in the United States. Financial relief is planned for more than 100 ITT Tech students from this state.

According to Mr. Schmidt, alumni will benefit from debt relief in excess of $ 1 million under an agreement between Kansas and the private lender, organized for the purpose to provide loans to non-profit college students.

The agreement was reached with Student CU Connect, LLC (CUSO), which Schmidt says has offered loans to fund tuition fees for students at ITT Tech.
The college filed for bankruptcy in 2016.

"The multi-state settlement, to which Kansas has acceded, will result in debt relief of more than US $ 168 million for more than 22,000 ITT alumni nationwide, and 108 Kansans will receive 1,003 $ 007.14 relief, "said a statement released Friday by the Attorney General of Kansas.

ITT Tech filed for bankruptcy in 2016 "in the context of investigations by state attorneys general and as a result of actions taken by the US Department of Education to restrict its access to federal student aid ".

ITT Tech, with knowledge of CUSO, "said the regulation" proposed a temporary credit (TC) at registration to cover the gap between tuition fees between federal financial aid to students and the total cost of education, "says Friday's release." The TC needed to be repaid before the next academic year, although ITT and CUSO know or should have known that most Students would not be able to repay the TC by the deadline. Many students complained that they thought the TC was like a federal loan and only had to be paid back six months after graduation. When the CT became due, ITT put pressure on students and forced them to accept loans from CUSO, which for many students had high interest rates loans. "

Former Kansas ITT Tech students who have questions about their rights under the settlement can go online to visit the Attorney General Consumer Protection Division or call the Attorney General's Consumer Protection Division at 800-432-2310 for more information.