SACRAMENTO – (INT) – A $330 million settlement has been reached with ITT Technical Institute (ITT Tech), the now-defunct predatory for-profit college, and its holding company.

The settlement, which in California is pending court approval, resolves allegations of an illegal private student loan scheme that harmed student borrowers by misdirecting them towards expensive student loans that they struggled to repay.

The settlement will automatically discharge an entire student-loan portfolio with loan forgiveness for anyone with an outstanding PEAKS loan. This will provide relief for more than 43,000 borrowers nationwide, including 4,000 Californians.

Story Date: September 24, 2020