Eligible borrowers will be notified by PEAKS or their loan servicer and need to do nothing to receive forgiveness. At least 1,100 former ITT Tech students in Maryland will receive relief, while 1,840 borrowers in Virginia will have their private loans canceled.
“Maryland students were deceived when they were pressured into taking on these predatory loans,” Maryland Attorney General Brian E. Frosh (D) said in a statement Tuesday. “PEAKS will be required by this settlement to provide debt relief to Maryland students who we allege were misled while they were working hard to further their education.”
ITT Tech created two in-house student-loan programs as private lenders retreated from the market at the height of the 2008 financial crisis. Banks stopped extending credit to students at for-profit colleges, because of their historically high default rates.
ITT Tech issued students “temporary credits” to cover remaining tuition after federal and private student loans