JACKSON, Miss. (WJTV) – Mississippi Attorney General Lynn Fitch announced the state has secured an agreement to obtain $1,763,071.28 in debt relief for former ITT Tech students in Mississippi. The funds are part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.
“Today’s settlement will deliver more than $1.7 million directly into the pockets of students targeted by PEAKS Trust’s predatory actions, many of whom continue to suffer the economic impacts of astronomical interest rates,” said Fitch. “This settlement should serve as a warning to other bad actors who take advantage of financially vulnerable Mississippians. My office will continue to seek justice, ensuring there are severe consequences for illegal actions against consumers in our state.”
The settlement is with PEAKS Trust, a private loan program run by ITT, and affiliated with Deutsche Bank entities. PEAKS was formed after the 2008 financial crisis when private sources of lending available to for-profit colleges dried up.
ITT had operated campuses in Madison, Mississippi. The for-profit college developed a plan with PEAKS to offer students temporary credit to cover the gap in tuition between federal student aid and the full cost of the education. ITT filed bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid.
Students will need to do nothing to receive the debt relief. The notices, which will be sent directly to those affected, will explain their rights under the settlement. Students may direct questions to PEAKS at customerservice@peaksloans.com or 866-747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.
In June 2019, Mississippi was also part of a $168 million settlement that resulted in debt relief for 18,664 former ITT students. That agreement was with Student CU Connect CUSO, LLC, which also offered loans to finance students’ tuition at ITT Tech.
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