Thousands of students nationwide who attended the now-defunct ITT Technical Institute would have nearly $600 million in loans canceled under a proposed court settlement, a significant win for consumers in Massachusetts and elsewhere who have long claimed that the for-profit chain defrauded them out of money and an education.
The settlement, which must be approved later this month by an Indiana federal bankruptcy court judge, also acknowledges that students who attended the college between 2006 and 2016 have a $1.5 billion claim against ITT. That means if any money is left over from the school’s assets after its bankruptcy, students could receive a share. Students who continued to pay their loans to ITT, even after the bankruptcy, will also get almost all of their $3 million back.
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