The embattled for-profit college ITT has closed its doors. The controversial college which charged some of the highest tuition in the industry, and had some of the highest default rates while showcasing low graduation rates, has closed its doors. Facing regulatory issues such as lawsuits for predatory lending, SEC investigations and charges levied against top executives, lawsuits from former students who were sold loans marketed by ITT, and being banned from taking new students financing their education with federal loans and financial aid, the company left a statement on its website stating only that they had discontinued operations, and that they have agreements in place with partner schools to provide students an opportunity to continue their studies. This is a regrettable development, but a number of the for-profit colleges have left a trail of broken promises and debt that has ensnared those who most wanted to better themselves.

HANDLING YOUR ITT STUDENT LOANS

The first thing that former ITT students need to know, is that under no circumstances should you pay telemarketing companies for help in handling your loans. Companies are counting on the trauma of shattered dreams, and panic about student loan debt to drive fish into the nets. If someone offers you a quick fix, offers to get your loans discharged or consolidated, or pressures you to sign up with a new school, you need to take a step back. The Consumerist website advises that students take their time and consider other colleges, consult with their loan servicer, after ascertaining their rights.

In a message from the Secretary of Education, students are advised that they may be eligible to have any federal student loans discharged, that you may be eligible to transfer your credit (this may limit your ability to obtain a discharge) and that students seeking real information need to bookmark their ITT announcements page. The department of education will directly contact current and recent students to inform you of your options, including a series of webinars for ITT students. The department has also asked community colleges near ITT campuses to accept credits given by ITT.

Now a word about something called “borrower defense to repayment.” You may have taken out federal loans to finance your education with ITT. If you were a victim of fraud and deception, misrepresentation, or if the school violated state laws in order to persuade you borrow money, you may have a path to both loan forgiveness and transferring your credits. However, it may be a very long path. These are serious charges to lay, and they must be specifically detailed and investigated. Completing acclaim and submitting it may allow your federal loans to be placed into forbearance or have collections actions stopped. If you are feeling confused or uncertain as to your status, we can help you with a free consultation in either our West Palm Beach or Fort Lauderdale office. Gather your paperwork, make a call and start getting to sleep at night.