Georgians Receive $4.1 Million In ITT Tech Settlement

Some students in Georgia will receive debt relief for private loans they took out to attend a failed for-profit school.

According to a press release from Attorney General Chris Carr's office, 471 former ITT Tech students in Georgia will receive $4,171,314.43 in debt relief for loans obtained to attend the school. 

ITT Tech declared bankruptcy and shuttered in 2016 amid nationwide investigations and restrictions inmposed by the U.S. Department of Education. Loan provider Student CU Connect CUSO settled with Georgia, 42 other states and the District of Columbia to wipe out loan debt for more than 18,000 students total.

“As Attorney General, I am committed to protecting Georgia families," Attorney General Carr said in a statement. “This settlement provides relief to hundreds of Georgia students and holds CUSO accountable for its role in subjecting ITT students to abusive lending practices.”

A statement from Attorney general Chris Carr says a private loan company and ITT Tech quote pressured and coerced students to sign onto high-interest loans to pay for classes.

Officials allege CUSO and ITT Tech "pressured and coerced" students to sign on to high-interest loans to help pay off Temporary Credits the school issued to cover the full cost of classes. 

Additionally, the school and loan provider did not counsel students on the true cost of repaying the temporary credit until it was converted to the high-interest loan. Nearly every borrower defaulted.

As part of the settlement, CUSO will forego collecting any oustanding loans and will cease to do business.