A settlement will result in the debt relief of about $330 million for 35,000 borrowers across the nation.

By: KDKA-TV News Staff

HARRISBURG (KDKA) – A new settlement will result in debt relief for nearly 1,500 former ITT Tech students in Pennsylvania.

Pennsylvania Attorney General Josh Shapiro has secured an agreement to get $11.9 million in debt relief for former students in Pa. It’s part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.

“This settlement will provide debt relief for more than 1,400 hardworking students in Pennsylvania who were pressured and coerced into accepting loans from PEAKS for fear of losing the credits they had earned,” said Attorney General Shapiro in a statement.

“As Attorney General, I will continue to hold accountable any student loan company or for-profit college that preys on the students they should be helping and not hurting. Thanks to the hard work of my Bureau of Consumer Protection and colleagues across the country we have canceled unfair debt for thousands of former students.”

The attorney general said ITT would pressure and coerce students into accepting high-interest loans from PEAKS, a private loan company run by the for-profit college.

ITT, which had seven campuses across the state, filed for bankruptcy in 2016.

Comments