“Many ITT Tech students were misled, coerced, or victimized by other illegal misconduct. The students incurred thousands of dollars in debt, often for useless degrees or credits,” said Attorney General Frosh. “We are pleased that the Department of Education heeded our recommendation to forgive the federal loans owed by defrauded students.”
ITT’s widespread and pervasive misrepresentation violated state consumer protection laws, including Maryland’s Consumer Protection Act. In 2019, Attorney General Frosh secured a settlement obtaining $6,021,455.80 in debt relief for 582 former ITT Tech students in Maryland as part of a multistate settlement with Student CU Connect CUSO, LLC (CUSO). The attorneys general alleged that ITT pressured and coerced students into accepting loans from CUSO, which often carried interest rates that far exceeded rates for federal loans.