Over 500 former ITT Tech students in Washington to have loans forgiven
OLYMPIA, Wash. — Over 500 Washington students scammed by a lender affiliated with the now-shuttered ITT Technical Institute will be provided over $5.1 million in debt relief.
Attorney General Bob Ferguson announced Monday that Student CU Connect LLC (CUSO) will provide debt relief for 100 percent of its student loans for deceiving ITT Tech students when it issued the loans.
ITT Tech was a for-profit college that abruptly closed all of its campuses in September 2016. Those closures included the campuses in Spokane Valley, Seattle and Everett.
Now, CUSO must provide a total of $5.1 million in student loan debt relief to 538 Washington borrowers who attended ITT Tech. The median amount of debt relief Washington borrowers will receive is $6,096. Nationally, CUSO will discharge $168.2 million in loans.
According to the Office of the Attorney General, CUSO issued loans to only ITT Tech students between 2009 and 2011. CUSO continued issuing loans even though ITT projected borrowers would default at rates exceeding 60 percent. The company now projects rates to exceed 90 percent.
“For honest lenders, a borrower’s ability to pay back a loan matters,” said Ferguson. “ITT Tech and CUSO were only interested in increasing their bottom line at their students’ expense. They issued private loans they knew students could not afford in order to access their federal loan dollars. This was a scam, and students deserve this relief.”
Catch up on the day’s news and look ahead to tomorrow by signing up for the Daily Local email newsletter from KXLY4. Headlines, events, and staff picks every weeknight at 8 p.m. Sign up HERE to get your news on the D.L.
COPYRIGHT 2020 BY KXLY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.