Former Pennsylvania ITT Tech students' debt canceled as part of $11.9 million relief settlement

Former ITT Tech students to receive payouts after settlement with attorneys general

PITTSBURGH — More than 1,400 former Pennsylvania ITT Tech students were awarded $11.9 million in debt relief in a multi-state settlement Pennsylvania Attorney General Josh Shapiro announced Wednesday.

The settlement is with PEAKS Trust, a private loan program run by the for-profit college and affiliated with Deutsche Bank entities.

>>RELATED: ITT Tech shuts down; students may be eligible for loan forgiveness

Content Continues Below

In 2016, ITT Tech closed and filed for bankruptcy after investigations by state attorneys general. The U.S. Department of Education restricted ITT’s access to federal student aid.

The school operated 130 for-profit schools nationwide, including one in Pittsburgh and one in Tarentum.

“This settlement will provide debt relief for more than 1,400 hardworking students in Pennsylvania who were pressured and coerced into accepting loans from PEAKS for fear of losing the credits they had earned,” said Shapiro.

If you want to receive BREAKING NEWS ALERTS, please download our WPXI News App. You can also follow WPXI on Facebook and Twitter.

Under the settlement, PEAKS has agreed that it will stop collection of the outstanding loans and stop doing business.

PEAKS will send notices to borrowers about the cancelled debt and will stop automatic payments.

Students do not need to do anything to receive the debt relief. Former students with questions can get in touch with PEAKS at customerservice@peaksloans.com or 866-747-0273, or the Consumer Financial Protection Bureau at 855-411-2372.

ITT Technical Institute closing all schools, including Pittsburgh