ITT Education Services Inc., which owned and operated the defunct for-profit ITT Tech college chain, reached a $60 million legal settlement Monday with the Consumer Financial Protection Bureau.
In the lawsuit, CFPB alleged that ITT improperly steered students to take out private loans through the college that they did not understand and could not afford. According to the settlement, CFPB will not seek to collect the $60 million judgment, as there are limited funds available at the company after its 2016 bankruptcy. But ITT is barred from collecting on any of those loans from former students.
CFPB reached a deal in June with Student CU Connect CUSO LLC, the company created to hold and manage private loans for the ITT students, in which the company agreed to forgive $168 million in student debt.
ITT at the time of its collapse in 2016 enrolled roughly 43,000 students at 130 campuses.