Trustee proposes settlement for former ITT Tech students
Former ITT Tech students still struggling with debt from the massive for-profit school’s 2016 shutdown could see some relief from a proposed settlement in bankruptcy court, Politico is reporting.
ITT Tech, a chain of for-profit schools, enrolled more than 40,000 students on 137 campuses nationwide, including sites in Robinson and at the Pittsburgh Mills mall in Frazer. The Trib reported that ITT abruptly closed its career schools in September 2016 and filed for bankruptcy after the U.S. Department of Education ceased providing federal student aid.
Even before the school closed, government regulators accused ITT of predatory lending practices and misleading students about job placement. Many ITT students maxed out on federal student loans and took private loans from the school before it failed.
Politico’s Morning Education reported that a bankruptcy trustee Wednesday petitioned a federal judge to approve a class-action settlement that would eliminate about $600 million in student debts former ITT students owed the school and give students who attended the school between 2006 and its closing status as creditors in the bankruptcy.
Debra Erdley is a Tribune-Review staff writer. Reach her at 412-320-7996, [email protected] or via Twitter @deberdley_trib.