Illinois officials say more than 1,000 former ITT Tech students could be eligible for $9.4 million in loan forgiveness
More than 1,000 former Illinois students who attended the for-profit college ITT Technical Institute could be eligible to receive more than $9.4 million in student loan debt relief, according to the attorney general’s office.
Illinois Attorney General Kwame Raoul said in a news release Tuesday the loan forgiveness is part of a $330 million nationwide settlement reached by 46 states, the District of Columbia and the Consumer Financial Protection Bureau with PEAKS Trust, a private loan manager.
PEAKS, created in 2009 to manage private loans for ITT students, offered students of the now-defunct college a temporary credit to cover tuition not financed through federal aid programs, according to the settlement agreement.
PEAKS acknowledged as part of the settlement it knew or should have known students would not be able to repay the credit when it was due nine months later. It acknowledged that when they couldn’t repay it on time,