Miller: For-profit school misled students
DES MOINES — Attorney General Tom Miller applauds the U.S. Department of Education's announcement Tuesday to discharge all remaining federal student loans for former students of ITT Technical Institute. The decision means 900 borrowers in Iowa will get $15.7 million of their debts discharged.
Nationally, 208,000 borrowers will receive $3.9 billion in full loan discharges. The action covers all remaining federal student loans that borrowers received to attend the for-profit school from Jan. 1, 2005, through its closing in September 2016. This includes borrowers who have not yet applied for a borrower defense to repayment discharge.
“This is great news, and it’s long overdue,” Miller said. “Our office has worked hard to provide relief for students who were deceived and incurred debts for a questionable education at ITT Tech.”
Federal Student Aid Chief Operating Officer Richard Cordray said: “Today, I am glad to announce the results of our work with Attorney General Miller to hold ITT Technical Institute accountable for cheating so many students out of their time and money. Students who put their trust in ITT were lured by lies about their job prospects and did not get the quality education they were promised. These students now will have their remaining federal student loan debt discharged without needing to take any further action.”
The Education Department also announced that it formally notified DeVry University that it is required to pay millions of dollars for approved borrower defense applications.
In September 2020, the AG’s office secured an agreement to obtain $1.3 million in debt relief for former ITT Tech students in Iowa as part of a settlement involving 48 attorneys general and the federal Consumer Financial Protection Bureau. That settlement was with PEAKS Trust, a private loan program run by the for-profit school and affiliated with Deutsche Bank entities.
In June 2019, Attorney General Miller was part of a $168 million settlement that resulted in debt relief for 18,664 former ITT students. That agreement was with Student CU Connect CUSO, LLC, which also offered loans to finance students’ tuition at ITT Tech.