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ITT Tech Student Loans Settle in Bankruptcy versus other Government Loans

ITT Tech student loans settle in bankruptcy and will be paid out assuming that ITT’s bankruptcy estate has sufficient funds. The settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement will also refund $3 million that students paid the for-profit chain. The students asserted a $1.5 billion claim against the company for consumer-protection violations and breach of contract, and asked for status to cover anyone who attended ITT Tech between 2006 and 2016.  This is in contrast to federal government loans that are being handled through the Education Department which is loathe to enforce enactments that help student borrowers who were defrauded by for-profit colleges.  One such statute known, as borrower defense to repayment, wipes away federal loans for students whose colleges used illegal or deceptive tactics to get them to borrow money to attend.  For more information on whether your student loan is eligible for discharge or settlement in bankruptcy, please fee free to contact us.  For more details on this particular settlement, please review the following article.