August 19, 2022

AG James Announces $78 Million in Student Loan Forgiveness for 4,400 New Yorkers Who Attended ITT

Bernard Nash

Cozen O'Connor

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Cozen O'Connor

New York AG Letitia James announced that as a result of a group discharge application filed with the Department of Education by a coalition of state AGs, over 4,400 New Yorkers will have their student loans forgiven. These students, who attended New York State campuses of ITT Educational Services, Inc. between 2005 and 2016 will have over $78 million in federal student loan debt discharged.
In their 2021 application, AG James and the 25-state coalition delineated numerous allegations that the now defunct ITT Education Services used deliberately misleading marketing tactics to recruit new students. Such practices included misrepresenting a high and constant rate of salary growth over an ITT graduate’s career and a projected annual base salary at $100,000 more than average earnings for workers with the same credentials. The coalition also alleged the company misrepresented aggregate earnings outcomes and earnings outcomes over time to induce borrowers to enroll in its programs.
Federal law permits the Department of Education to forgive federal student loans when borrowers were deceived in obtaining loans. In its application for federal loan discharge, the coalition presented the Department of Education with evidence that included internal ITT documents, recruiting materials, recordings of sales calls and testimony from former students, employees and administrators.

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