Loan debt for former ITT students canceled
BOSTON — A private lender that specialized in making loans to students at the now defunct for-profit ITT Technical Institute will cancel more than $5.6 million worth of debt for nearly 600 Massachusetts students, according to Attorney General Maura Healey.
Under the terms of the agreement with the state Attorney General's office, PEAKS Trust will cease operations in Massachusetts and nearly 600 students will receive an average of approximately $9,395 in debt relief.
Under the terms of an assurance of discontinuance to be filed in Suffolk Superior Court, PEAKS Trust will forego collection of outstanding loans and issue no new loans to student borrowers. PEAKS's loan servicer will send notices to eligible borrowers about the cancelled debt and ensure that all automatic payments are cancelled. PEAKS is also required to supply credit reporting agencies with information to update credit information for affected borrowers.
The settlement has been filed in conjunction with resolutions reached with 48 attorneys general offices against PEAKS Trust totaling over $330 million, providing debt relief to over 35,000 students nationwide.
Healey's lawsuit against ITT, filed in April 2016, continues both in Superior Court and in federal bankruptcy court. Students with questions about their rights under the settlement should call Attorney General Healey's Student Loan Assistance Unit, at 1-888-830-6277, ext. 2.
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