CHICAGO - Students who were enrolled at now-closed ITT Technical Institute campuses in Illinois are eligible for $9.4 million in student loan debt relief, the state’s attorney general announced Tuesday.
Illinois’ share of a $330 million national settlement follows investigations by several attorneys general over student loans offered by the for-profit school.
The 47 attorneys general and the Consumer Financial Protection Bureau reached the settlement with PEAKS Trust, which ran a private loan program for ITT Tech. According to the agreement, PEAKS acknowledged coercing and pressuring students into taking out higher interest loans, has agreed to forgive outstanding loans and end operations.
“This settlement holds PEAKS accountable for its role in misleading ITT Tech students in Illinois about the loans it offered,” Illinois Attorney General Kwame Raoul said in a statement.
ITT Tech filed for bankruptcy and closed its campuses in 2016, including in Orland Park, Arlington Heights, Oak Brook and Springfield.
Raoul said students don’t have to do anything to receive the relief.