LINCOLN — State Attorney General Doug Peterson announced Monday that 176 former ITT Technical Institute students in Nebraska will share more than $1.76 million of debt relief under a multistate settlement agreement.
Under the settlement, CUSO, a company set up to manage private loans for ITT students, agreed to cease doing business, stop collecting all outstanding loans and ensure that all automatic payments are canceled. The settlement also requires CUSO to update credit information for affected borrowers.
ITT filed for bankruptcy in 2016, amid investigations by state attorneys general and a move by the U.S. Department of Education to restrict its access to federal student aid.
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The attorneys general alleged that ITT, with CUSO’s knowledge, offered students zero-interest, short-term loans upon enrollment and later pressured the students into accepting high-interest, long-term loans offered by CUSO. The vast majority of students later defaulted on those loans.
A related settlement between CUSO and the U.S. Consumer Financial Protection Bureau was announced June 14.
Students with rights under the settlement will receive further information by mail.