CONCORD — State prosecutors announced that 10 students in New Hampshire of the former ITT Tech will share $117,020 as the result of a 43-state settlement with the failed, for-profit college.
ITT had a campus in Nashua and it filed for bankruptcy in 2016 amid investigations by state attorney generals.
The move also followed action by the U.S. Dept. of Education to restrict ITT’s access to federal student aid.
A U.S. Bankruptcy Trustee approved a related settlement Friday with the Student CU Connect CUSO that had offered loans to finance students’ tuition to attend ITT.
Deputy Attorney General Jane E. Young alleged that ITT without knowledge of CUSO offered students temporary credit upon enrollment to cover the gap in tuition between federal student aid and the full cost of education.
The credit was to have been repaid before the students’ next academic year but ITT and CUSO knew or should have known students would not be able to repay the credit when it became due.
Many students told prosecutors that they thought the credit was like a federal loan and would not be due until six months after they graduated.
Prosecutors said ITT also used high pressure tactics to get students to accept these loans many of which carried interest rates far above the rates for federal loans.
All told this settlement will provide debt relief of $168 million to more than 22,000 former ITT students.
Under the settlement, the CUSO, under threat of litigation, has agreed that it will forego collection of the outstanding loans.
Students may also contact the attorney general’s office’s Consumer Protection Bureau at 1-888-468-4454 with questions.