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We’re protecting students from predatory lending

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Today, we filed a lawsuit against ITT Educational Services, Inc., accusing the for-profit college chain of predatory student lending. We believe that ITT used high-pressure tactics to push many students into expensive private student loans that were likely to end in default.

This is our first public enforcement action against a company in the for-profit college industry.

“Today’s action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics,” said Director Richard Cordray.

You can read the press release, read Director Cordray’s full remarks, and view the formal complaint against ITT.

You can also watch a recording of today’s press conference.

  • Mike Bates

    I graduated in 2006. I have the same issues, Lots of promise, booming job market, Pushed out the door and bust. Big default, now i have roughly 40K mixed public and private loans that have long since defaulted, and my credit destroyed. I want in on this action!

  • john

    You need to go after the Savannah College of Art and Design too! It’s a debt factory!

  • Julian

    Franklin University in Columbus, OH is another one that pads the list of required classes and runs up huge loans. University of Phoenix too. Glad to see someone finally looking into these for profit schools that take advantage of people just trying to improve their circumstances.

  • RJohnson

    I graduated from their Ohio loacation in 1996 still trying to repay the student loans and no job in the field. Dose this lawsuite effect me also?

  • Agentgreen

    Please let me know how I can be a part of this lawsuit. Not through ITT Tech but another school

  • Joseph Satkus

    i graduated from ITT Tech in 2010 with an associates degree in multimedia design… currently more than 60,000 dollars in debt split up between nearly a dozen loans all with different terms and requirements. itt tech lied to me and misadvised me on numerous occassions. if i can be a part of this lawsuit, i’m eager to be. institutions like this need to be brought to justice. my family has been suffering for far too long over this impossible debt. i don’t qualify for any jobs with an associate’s degree… and itt tech eliminated my major… so returning in order to achieve a bachelor’s degree isn’t even an option. i was told they were accredited… i was told my maximum payments would be 50 dollars per month… they told me this to get me to sign the papers they needed me to sign. please help. this burden has been a crippling one for years now…

  • Joseph Mixen

    I have tried to file a complaint against ITT Tech with the AGO Missouri and they just seemed to roll over to ITT Tech. I have documents showing the misleading marketing they pitched to me, and I even have documents that I believe they forged my name on because it is misspelled on the document. The ITT Tech that I attended and graduated from in 2007 promised me a job making 80k a year when I graduated and they strapped me with over 80k in mixed student loans that have detroyed my life. I have not defaulted yet, but I cannot afford to ever move out of my dad’s house because of the student loan debt. I would like to join in on this case against ITT Tech as they did lie, mislead, and even at times force me to sign for loans without fully explaining what the terms where on them.

  • economist46

    Sallie Mae should be looked into. The increase in interest rates from 5-7 years to now is several percentage points- this increase occurred during a time when Sallie itself borrowed the funds at @ 1%. Sallie’s interest rates need to be capped by the federal govt which insures the sallie loans (even though sallie is a private company). I agree with another commenter that part of the problem is high tuitions – however, the schools keep charging higher tuitions because they know students will just take out more loans. If lending to students becomes more difficult and less profitable to groups like Sallie Mae, the schools will be forced to cut spending on unnecessary programs – and lower tuitions.

    • Tamara

      i agree

  • ready1923

    Count me in too. My son attended ITT in Illinois in 2003 for only about six months. He dropped out because he said they were teaching things he had learned in high school and that was only when the “professors” showed up. I co-signed the student loans for him. 10 years later I am still paying for six months of poor education.

  • Tamara

    ITT has done the exact same thing to me… and now I cant go back to school bc of my student loan debt that I had no clue about and my credit is ruined! I would love to give you guys a statement and help in any way i can

  • Rachel

    I graduated from ITT’s Newburgh campus in 2009 with a BS. I just started repaying my loans after keeping them in forbearance because I could not afford to pay. I have reached my allowance on forbearance. Currently, I owe $98,000 in subsidized, unsubsidized, federal, and private loans. A couple years ago at the insistence of a former instructor, I returned to ITT to speak to a career services representative to see if she could assist me. She told me that the only job leads they have are pulled from online sites, such as Indeed.com, and they pass those “leads” on to current students. They do not have relationships with any private or public sectors businesses! I was sick and embarrassed for her and for myself. I also sought their help when I was a student and on several occasions they would just take my resume and say they will pass it on if they have something come available. I interviewed for a position within the school as a student. ITT needs to be sued and forced to pay off all students’ private loans at the same rate at which we are struggling to pay them. Forgive our loans! They are predators! Thank you CFPB for finally pursuing this injustice.

  • J S

    I went to one of the campuses in MI in 2011. No job in my field, immensely in debt, and their methods to get you pay are definitely predatory. I was told by an ITT tech employee that I had to sign papers saying I had to pay all my debts. I said “can I take this home and look at it before I sign it?” They said no, and that “[I] couldn’t graduate” (which was in 2 weeks) unless I signed it. If there is any way I can join in this lawsuit, I urge this organization to contact me.

  • Sylvia

    Please count me on this lawsuit. I am also in debt with student loans and in ITT but I am beginning to believe there are no jobs for highly educated students. I hope something does come out of this, it is really a rip off for all students!! We are All in default!!!

  • Audrey

    I fell victim to the personal loan scam as well with ITT. Had to file bankruptcy to get out of it – but I still owe Sallie Mae for the other $10k and have no degree to show for it – just debt.

  • Joshua McDaniel

    I got snaked into ITT Tech in 2010 with promises finding a job in the IT industry. I dropped out 1 1/2 years later because they were discontinuing my program and didn’t even offer practical classes in the IT fields that I was looking to enter. Needless to say, I’m $12,000+ in debt from that short period of time, and in my local Community College, I have learned far more in the last 2 years than I did at ITT Tech. I definitely want to get involved with this.

  • Kristine O’Leary

    I have an associates degree (finally) from ITT and at least $80,000 in student loans. I was constantly taking classes that were so un-related to my field of study, classes that were supposed to be introductory and were well above that level, and I had to take some classes twice to pass them, and some classes were so similar in topic and assignments that I felt I took the “same class” with a different title several times. Shortly before I was to obtain my associates, ITT changed all of their bachelor programs away from focus to a general degree in “PROJECT MANAGEMENT”. What??? Now, I am stuck with all this debt, no bachelor degree in my focus and I have no idea how I will ever pay it all back. I have at least 17-18 different loans with different rates and Salle Mae can’t even keep track of it all and I have a statement that says I do not owe any previous balance, yet are charging me a late fee and reporting on my credit. I am in a different school full-time now and I am in deferment. I have no idea what I am going to be able to do about any of it. I hope the CFPB can help all of us.

  • Nathan Hollander

    They did the same thing to me I will be filing a complaint against them as well. I would love for them to be brought to terms for what they do to people in giving them high hopes and a line of BS. I will be paying these student loans and having to deal with this massive debt that has put me in a position of financial stress. I would love for them to be brought to justice and get my money back and the bad marks to my credit erased so that I can do something for my family instead of spending the next 15 years paying off a debt that got me no where. i will be calling the number sent to me to file a complaint against them. Hopefully my student loans will be paid by them and I can be reimbursed what I have paid on them already. I would love to see my credit back in the good again instead of having to work at cleaning it up again for the rest of my life. They are a scam and have no intentions of educating anyone, this is why they always change the course names and curriculum and go through teachers left and right. No one wants to stay with ITT or work for them.

  • Rachel

    Also, due to ITT’s credits not transferring and ITT not being accredited, I have to start completely over if I wanted to pursue a Master’s. I was told ITT was accredited, but that too was a lie. I attended a state school in 2012 and was taking core classes that I had already taken at ITT, but I just gave up. I should not have to back-track to move forward.

  • Sick of everything

    Yep, this is good news. Something needs to be done for those of us that got shafted years ago and are still saddled with useless debt and no recourse. It drives me crazy to see ad after ad on cable TV for lawyers to help with the IRS or medical devices or medication that turned out to be dangerous or what ever, but you never see anything about helping people with student loans fight back against these crooks at the for profit schools. The Gov knows they are scamming people but they still back them, I don’t get it. I am real tired of being ignored, lied to and misinformed while bankers and WallStreet and others get away with not only tanking our economy but thousands of people’s retirement. It’s been proven but yet these people get away with it all with no accountability or oversight what so ever so of course they just continue to do what ever they want at our expense. Sick of it. I don’t mind paying for something I want or need, but when it does not perform or turns out to be a product of false claims I have a big problem paying for anything I didn’t get that was promised or that does not perform. I guess if we keep the pressure on the CFPB and everyone else, maybe we can get results. In the mean time it’s making my life and others life miserable all because we trusted someone that was supposed to be helping us to a better life, ya right.

  • Nicholas V Bowers

    I was forced to Choose between school and my job at one point because they tried to cancel my course which nded up forcing me to go full time when my job wouldn’t allow it. Eventually i had a schedule conflict and had to quit going to School.

  • Nicholas V Bowers

    And also i received very few non transferable credits whereas making it impossible to finish elsewhere like a state school where course fees are wayyy lower.

  • John David Woody

    I too attended ITT Tech. It started off fine for several months I maintained a 3.0 – 3.8 GPA.until several electrical outside problems, snow prevented me me from getting online to continue my studies. They gave me SAP forms to fill and I complied without problem and was reinstated 2 times. Well, the same issues happened to me again and I was dropped from the Institution. I called to no avail to explain, no one responded. I emailed them with no success. Now, I am expected to pay off a debt and I have not received any credit for my 2 years of work. I am now in progress to start with CTU because I want to get my degree. Please tell me what can I do. johndwoody@verizon.net

  • Jay

    I am definitely all in on this. I just spoke with a rep and she has stated at this point there is no information on being part of the class in this suit. This is something that will need to happen as this progresses. I am stuck with about 30K in private loans that are a pain to deal with. They told me basically pay what is due or we will report adversely to credit bureaus and take it to court. The FED loans will work with you, and from my understanding there is nothing that can really be done about those. The private loans are through partnerships that ITT made with these banks and ITT also received deep discounts. The students we charged full price while the school only accepted about 72% of the amounts that our loan balances with the companies state. This information is available through online due to a senate inquiry into this. CFPB please keep us all informed into this, I will be checking on a regular basis here as to how to stay involved and informed, I will also be spreading the word to all those that I know that attended this joke of a school.

  • Brittany

    Is there a possibility of going after more for-profit schools? I attended the Art Institute Schools in Ohio and Indiana. I have over $80,000 in student loans that I am having a terrible time paying back and have defaulted on many of my private loans. I hope that this will bring some light to this growing problem and help protect students in the future.

  • MFalcon

    It’s an interesting discussion. Private, non – profit colleges will give $180,000 in student loans to an 18 yr old kid with no savings, no job and no credit history, whose dream is to become a $48,000/yr teacher. Why isn’t the CFPB investigating these practices, too? Correct me if I’m wrong, but the cost of college goes up about 7% per year. When your customer is a wet behind the ears 18 yr old with an unlimited amount of Federal student loans available, why not increase prices 7% per year?

  • Caleb keirsey

    Agree!!!! Finally!! My life & family has been negatively impacted by ITT Technical Institute! IT’s just not worth it. While I attended ITT Technical Institute, I tried my hardest and still do. But, the outrageous debt I have is unbelievable. I was a slacker in high school, was raised in a lower-class family, and still kept dreaming of having a college education. ITT Technical Institute easily made my “dream come true.”
    The massive debt I have is overwhelming. I just think positive and try my hardest to keep my wife happy. My wife loves me so much much which makes it worse because I have become a burden to her life because of the debt that comes from ITT Technical Institute.

    CFPB, please help us!!

  • Charles Richard Gibson

    How do I get in on this? I graduated in 2009 and 2011 from ITT. I want to help!!!!!

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