$1.85M

September 16, 2020 | Number of The Day
Amount of debt to be forgiven under a settlement agreement between state and a lender who issued loans to students at the now-closed ITT Tech

Attorney General Gurbir S. Grewal announced Tuesday that more than 200 state residents will benefit under a settlement agreement that provides roughly $1.85 million in forgiveness of loans issued by PEAKS Trust 2009-1, part of a lending program created in 2009 to purchase, own, and manage private student loans offered to students at ITT Tech, which declared bankruptcy in 2016 amid investigations of misleading and predatory practices.

The agreement is part of a nationwide settlement that will result in loan forgiveness of approximately $330 million for 35,000 borrowers with outstanding principal balances. Under the  agreement, PEAKS will halt all collection activities on the loans, stop accepting further payments and dissolve as a business.

“We are pleased to obtain debt relief for students who were harmed by the exploitive, predatory conduct of ITT Tech and PEAKS. When for-profit schools and their financial partners paint students into a corner with unpayable debt, we will hold them accountable,” Grewal said.

Grewal announced a settlement with a different firm that loaned money to ITT Tech students last year.