Two Connecticut students are among thousands sharing in a multi-state, $168 million settlement involving abusive college-loan practices at failed for-profit educator ITT Technical Institute, authorities say.
State Attorney General William Tong joined 43 state attorneys general in announcing Monday $168 million in debt relief for 18,664 former ITT Tech students nationwide.Â
The Connecticut pair will receive a combined $31,757 in debt relief, Tong said.
The settlement is with Student CU Connect CUSO LLC, a San Diego, Calif., credit union service organization that offered loans to finance students’ tuition at ITT Tech from 2009 to 2011.Â
Under the settlement, the CUSO agreed to forego collection of the outstanding loans and to cease doing business. Â
ITT Tech filed bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid.
A related settlement between the CUSO and the federal bankruptcy trustee was approved on June 12. The attorney generals’ settlement is also contingent on federal court approval of a related settlement between the CUSO and the federal Consumer Financial Protection Bureau.Â
