Settlement offers loan relief for former ITT Tech students

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Millions of dollars in loan debt will be wiped away thanks to a new settlement with a company associated with ITT Technical Institute.

The Georgia Attorney General's Office announced the multi-state settlement with Student CU Connect, LLC Thursday morning.  The company, also known as "CUSO," only provided loans to students at ITT Tech.  Multiple attorneys general alleged ITT pressured students into agreeing to the high-interest loans, without disclosing all of the terms.  Those students continued to owe that money even after ITT Tech closed its doors back in September 2016.

In Georgia, the settlement impacts 471 former ITT Tech students.

"We think this is an important settlement that sends a strong message and we're very pleased that it's going to give relief to these almost 500 students in Georgia that were simply trying to get ahead in their education opportunities," said Shawn Conroy with the Georgia AG's Consumer Protection Division.

In Georgia, the total debt relief adds up to more than $4.1 million and nationally it is more than $168 million.

The settlement requires CUSO to notify all of the impacted students, as well as all the credit reporting agencies about the status of those loans.  CUSO must also cease operations.

Conroy said anyone with questions should contact the state's Consumer Protection Division at 404-651-8600.