Additionally, AG Shapiro said many Pennsylvania students were burdened with student loan debt and struggled to find jobs because of ITT Tech.
“I will hold accountable any student loan company or for-profit college that preys on the students they are technically supposed to help,” said AG Shapiro.
Complaint against CUSO, ITT Tech
In their complaint, the Attorneys General alleged that CUSO was aware that ITT Tech offered students Temporary Credit (TC) upon enrollment to cover the gap in tuition between federal student aid and the full cost of the education. Students were supposed to pay the TC before the next academic year. However, many students complained because they thought the TC was similar to a federal loan and would not be due until six months after their graduation.
ITT Tech allegedly pressured and coerced students into accepting the CUSO loans when the TC became due. Many students complained that those loans carried high interest rates, far above the rates for federal loans.
The school allegedly pulled students out of class and threatened to expel them if they refused to accept the terms of the loans. Most students were forced to accept the CUSO loans because ITT credits are not transferrable to other schools.
