News
Update | ITT Students’ $1.5 Billion Bankruptcy Settlement Approved by Judge
On Wednesday, November 28, the judge in the ITT bankruptcy case gave final approval to the settlement between the student class and the estate of ITT. The settlement is a big victory for former ITT students who were defrauded by the school and provides important relief.
For-Profit College Closes Operations, Surprising Students | Associated Press
One of the nation's largest for-profit college chains announced Wednesday that it was abruptly closing in dozens of locations nationwide, after its accrediting agency suspended approval. Birmingham, Alabama-based Education Corp. of America said it was closing schools operating as Virginia College, Brightwood College, Brightwood Career Institute, Ecotech Institute and Golf Academy of America in more than 70 locations in 21 states.
Student Loans Watchdog Who Quit Under Trump Plans Own Initiative | The Guardian
A former federal student loan watchdog who loudly quit his job this year has announced a new initiative to help solve the $1.5tn student debt crisis. Seth Frotman, the former student loan ombudsman at the Consumer Financial Protection Bureau, will lead the Student Borrower Protection Center, which also will employ several of Frotman’s former colleagues at the federal bureau.
Court Eliminates Debt of Former ITT Tech Students | Inside Higher Ed
A federal judge approved a settlement Wednesday that erases more than $500 million in student debt held by former ITT Technical Institute students. The settlement also returns $3 million that was paid by students since the company filed for bankruptcy in 2016.
Students Secure More Than $500 Million In ITT Student Debt Relief As Part of Landmark Settlement Approved Today | Press Release
In a major victory for ITT students, a federal judge has approved a settlement confirming that 750,000 former students were cheated by the company and cancelling every dollar of student debt held by the for-profit-school.
ITT Tech Students Score Victory in Bankruptcy Settlement | Washington Post
As creditors of ITT Educational Services fight over the remaining assets of the defunct for-profit college operator, one group has secured a significant victory in the bankruptcy proceedings: former students. On Wednesday, a federal judge gave final approval to a settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement, which was first announced in January, will also refund $3 million that students paid the for-profit chain.
Update | New York Times Highlights Project on Predatory Student Lending Cases and Clients
A recent story in the New York Times highlighted several of the Project’s cases, and their prominence in the ongoing battle to force the Department of Education to recognize the legal rights of students who have been cheated by predatory for-profit colleges.
Borrowers Face Hazy Path as Program to Forgive Student Loans Stalls Under Betsy DeVos | New York Times
The students attended institutions with pragmatic names like the Minnesota School of Business and others whose branding evoked ivy-draped buildings and leafy quads, like Corinthian Colleges. Tens of thousands of them say they are alike in one respect: They were victims of fraud, left with useless degrees and crushing debts.
Update | A Winning Streak For Student Borrowers
After years of delay by the Department of Education, student borrowers represented by the Project on Predatory Student Lending are finally winning their rights in courts. On four separate occasions this month, judges rebuked the Department, struck down illegal policies, and ruled in favor of students.