Idaho gains relief for ITT Tech borrowers

Some 215 former ITT Tech students are in for some debt relief.

Idaho Attorney General Lawrence Wasden said his office has secured an agreement to obtain $1.86 million in debt relief. It is part of a settlement with Student CU Connect CUSO, LLC, which offered to finance students’ ITT tuition. It involves 43 states and the District of Columbia.

“ITT Tech subjected students to abusive lending practices and this settlement is a step toward fixing those transgressions,” Wasden said. “This settlement will provide relief to hundreds of Idahoans who attended ITT Tech and took on debts for a questionable education they could not repay nor discharge.”

The attorneys general argued that ITT & CUSO misled students on repayment agreements. And neither made students aware of what the true cost of repayment would be.

Under the settlement, CUSO agreed to forego collection of outstanding loans and cease doing business as a lender. CUSO is also required to supply credit reporting agencies with information to update credit information for affected borrowers.

You can see the compliance agreement here.