Michigan Attorney General Dana Nessel announced a secured agreement in debt relief for former ITT Tech students in Michigan as part of a settlement with 47 other attorneys general and the federal Consumer Financial Protection Bureau.
The settlement is in the amount of $18,981,647.32.
Nessel said the settlement is with PEAKS Trust, a private loan program run by the for-profit college and affiliated with Deutsche Bank entities. She said nationally it will result in debt relief of nearly $330 million for 35,000 borrowers who have outstanding principal balances.
ITT filed bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid.
“Thousands of students here in Michigan sought better opportunities through education and were pressured into financial agreements that the lenders knew or should have known these students couldn’t repay,” Nessel said. “As a result of this settlement, 2,372 loans in Michigan will be totally forgiven. Those affected will also receive updates to their credit reports to ensure any derogatory marks associated with PEAKS Trust and ITT are removed. I am proud of the members of my team who worked tirelessly alongside 47 other states to secure this relief for Michigan students.”
To read a copy of the Assurance of Voluntary Compliance, click here.