LANSING, Mich. (WOOD) — More than 1,800 former students of ITT Technical Institute will get a break on debt as part of a multi-state settlement with a lending company.
Michigan’s share in the settlement is $15.3 million in debt relief for 1,868 former ITT Tech students, Michigan Attorney General announced Wednesday.
The total settlement amount was more than $168 million for more than 18,000 former students in 43 states.
Nessel says Student CU Connect CUSO, LCC “preyed on ITT Tech students” with “unscrupulous and abusive lending practices.”
The attorneys general accused ITT Tech and CUSO of pressuring students to obtain loans to cover temporary credit, often at interest rates well above federal loan levels. The attorneys general said some students were removed from class and threatened with expulsion if they didn’t accept the loan terms.
Since most schools wouldn’t accept ITT credit transfers, students took the loan and were allegedly forced to default under the terms, the attorneys general say.
Under the settlement, CUSO has agreed to halt collecting on outstanding loans and shut down. The company will also notify all credit reporting agencies of the students’ borrowing status.