Villalba et al. v. ITT
To learn if you are a member of the class, and to find out more information for class members, click the link below.
The Latest
On February 23, 2022, the Bankruptcy Court approved a plan for distributing money from the bankruptcy estate to members of the student class, which includes anyone who attended ITT at any time from January 1, 2006, to September 16, 2016, as well as anyone who attended Daniel Webster College at any time from January 1, 2009 to September 16, 2016. Former students should have received notices by mail and email with information on how to confirm/correct mailing information and verify preferred payment methods. For more information, please visit: www.ittstudentclaimsettlement.com
About Villalba et al. v. ITT
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In 2016, the Department of Education cut off federal student aid to ITT. Because almost all of ITT’s revenue came from federal student aid, it declared bankruptcy weeks later. In determining what would happen to the estate of ITT, it became clear that the students who had been preyed upon by ITT to build that estate needed to be part of the conversation. PPSL, along with five former ITT students, intervened in ITT’s bankruptcy proceedings on behalf of all former ITT students, seeking to cancel the private student loan debt held by the estate of ITT and hold ITT accountable for its fraud. These five former students sought to act as representatives of hundreds of thousands who attended and were defrauded by ITT between 2006 and 2016. Along with the students, the CFPB and multiple state attorneys generals are parties in the bankruptcy proceedings.
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2016: Department of Education cut off federal student aid to ITT.
January 3, 2017: This case was filed in the Southern District of Indiana Bankruptcy Court.
November 28, 2018: the Bankruptcy Court judge gave final approval to the student class settlement.
February 23, 2022: the Bankruptcy Court approved a plan for distributing money from the bankruptcy estate to members of the student class
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ITT Tech was one of the country’s largest for-profit college chains. Over the past decade alone, it took in over $11 billion in revenue, 98% of which came from tuition, and 76% of which came from federal student aid. Headquartered in Carmel, Indiana, it grew at incredible rates after becoming a publicly traded entity in 1999, and came under increasing scrutiny for its recruitment practices. ITT was featured prominently in the Senate HELP Report of 2012, which detailed consumer fraud and misuse of federal funds at many for-profit colleges around the country. By the time it declared bankruptcy in late 2016, ITT had been subject to lawsuits by numerous state and federal enforcement agencies, as well as multiple whistleblowers.
Despite extensive evidence of illegal behavior, and a series of piecemeal debt cancellation announcements regarding ITT student debt, the Department of Education continues to collect on many federal student loans that funded ITT’s fraud.
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January 03, 2017: Student Class Adversary Complaint
January 03, 2018: Trustee’s Motion for Authority to Enter into Settlement of Student Class Action
January 03, 2018: Student Class Settlement Agreement
January 31, 2018: Student Class Settlement Notice and Opt Out Form
August 15, 2018: Order Granting Motion for Entry of a Protective Order Governing the Production of Discovery Materials by the Trustee
September 09, 2021: Order Granting Student Claimants Motion for an Order Modifying the Protective
January 20, 2022: Student Claimants’ Motion to Approve Distribution
February 23, 2022: Order Granting Student Claimants’ Motion to Approve Distribution
Dreams Destroyed: Proof of ITT’s Massive Scale Fraud and Abuse
Many of the documents cited as evidence in Dreams Destroyed are subject to a series of Protective Orders in the ITT bankruptcy case. This means that the Court has only allowed the Department of Education and former ITT students, who use these redacted documents in Proceedings before the Department of Education, including for Borrower Defense Applications, to have these documents. By requesting the documents cited as evidence in Dreams Destroyed, you certify that you are a former ITT student, and that you will only use these documents in a submission to the Department of Education. If you are interested in receiving the documents cited as evidence in Dreams Destroyed, please email us info@ppsl.org.
“Everything about ITT was a lie. And those lies didn’t just affect me, it has affected my entire family. Even with the federal loans canceled, my credit has been severely negatively impacted. My mom is getting harassed by debt collectors threatening to garnish her wages and close her bank account.”
— Jorge Villalba, lead plaintiff and former ITT student
Coverage
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When colleges defraud students, should the government go after school executives? | NPR
March 1, 2022
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Report On Fraud Committed By ITT Technical Institute Highlights Need To Protect Student Loan Borrowers With Stronger Regulation Of For-Profit Colleges | Forbes
February 24, 2022
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DeVry, ITT Tech students among thousands of defrauded borrowers to receive $415 million in loan cancellation | Washington Post
February 16, 2022