For Immediate Release
September 16, 2020
Concord, NH – Attorney General Gordon J. MacDonald announces that New Hampshire has secured $369,508.93 in debt relief for 41 former ITT Tech students in New Hampshire as part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.
Nationally, the settlement will result in debt relief of about $330 million for 35,000 borrowers who have outstanding principal balances.
The settlement is with PEAKS Trust, a private loan program run by the for-profit college and affiliated with Deutsche Bank entities. 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.
PEAKS was formed after the 2008 financial crisis when private sources of lending available to for-profit colleges dried up. ITT 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.
According to the Assurance of Discontinuance filed in New Hampshire Superior Court:
Under the settlement, PEAKS has agreed that it will forgo collection of the outstanding loans and cease doing business. PEAKS will send notices to borrowers about the cancelled debt and ensure that automatic payments are cancelled. The settlement also requires the PEAKS to supply credit reporting agencies with information to update credit information for affected borrowers. Students will need to do nothing to receive the debt relief. The notices will explain their rights under the settlement. Students may direct questions to PEAKS at firstname.lastname@example.org or 866-747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.
In June 2019, New Hampshire was 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.
New Hampshire's participation in this multistate effort was led by Senior Assistant Attorney General Brandon H. Garod, Chief of the Consumer Protection and Antitrust Bureau.
New Hampshire Department of Justice
33 Capitol Street | Concord, NH | 03301