INDIANAPOLIS — The state of Indiana will receive more than $5 million in debt relief for hundreds of former students of a for-profit college chain that went bankrupt in 2016.
The money will cover the debts of 602 former ITT Technical Institute students in the state of Indiana, Indiana Attorney General Curtis Hill said in a press release issued Thursday.
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The money is part of a legal settlement between 44 attorney generals and ITT Tech and Student CU Connect CUSO LLC, a lending company. The entire settlement will result in debt relief of more than $168 million for more than 18,000 former students across the country, according to Hill.
“Protecting Indiana families is our top priority,” Hill said. “This settlement holds CUSO accountable for its participation with ITT in subjecting ITT students to abusive lending practices, and it provides relief to hundreds of Indiana students who attended ITT Tech and incurred massive debts for an education and loans they could not repay nor discharge.”
Under the settlement, CUSO has agreed to forego collection of outstanding loans, cease doing business, notify all credit reporting agencies of the status for all borrowers and cancel all automatic payments.
Affected former students do not have to take any action.