BALTIMORE, MD (April 1, 2021) – Maryland Attorney General Brian E. Frosh today joined a coalition of 24 attorneys general urging the U.S. Department of Education to cancel federal student loan debt of those who attended ITT Technical Institute (ITT Tech). The now defunct for-profit school defrauded thousands of individuals by encouraging them to enroll and obtain federal student loans based on false and misleading information about the value of an ITT degree and empty promises of high-paying jobs after graduation. The borrower defense application filed today includes students who attended ITT Tech between at least 2007 and 2011. ITT’s widespread and pervasive misrepresentation violated state consumer protection laws, including Maryland’s Consumer Protection Act.
Federal law permits the Department of Education to forgive federal student loans when borrowers were deceived in obtaining loans. The attorneys general are seeking full relief to ITT students, including refunds of the money students already paid on those loans.
“Many students were misled when they enrolled at ITT Tech, incurring thousands of dollars in student loan debt based on false promises made by the school,” said Attorney General Frosh. “These students should not have to bear the burden of the school’s misconduct. By law, the Department of Education can – and should – forgive the federal loans obtained by defrauded students.”
ITT enrolled roughly 282,000 students across the country between 2007-2010. During this enrollment period, ITT showed a document, “Value Proposition for Employed Graduates,” to prospective students to convince them to enroll and, in most cases, borrow thousands of dollars in federal student aid. In the document, ITT misrepresented the value of its education – claiming it would be substantial – and that students who enrolled would get high-paying jobs upon graduation with a constant rate of earning growth. Prospective students were shown a projected annual salary over an estimated work life that misrepresented the projected annual earnings for ITT graduates at $100,000 more than the average earnings of workers with the same credentials.
Attorney General Frosh was joined in the letter by the attorneys general of Colorado, the District of Columbia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, Washington, and Wisconsin.
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Federal law permits the Department of Education to forgive federal student loans when borrowers were deceived in obtaining loans. The attorneys general are seeking full relief to ITT students, including refunds of the money students already paid on those loans.
“Many students were misled when they enrolled at ITT Tech, incurring thousands of dollars in student loan debt based on false promises made by the school,” said Attorney General Frosh. “These students should not have to bear the burden of the school’s misconduct. By law, the Department of Education can – and should – forgive the federal loans obtained by defrauded students.”
ITT enrolled roughly 282,000 students across the country between 2007-2010. During this enrollment period, ITT showed a document, “Value Proposition for Employed Graduates,” to prospective students to convince them to enroll and, in most cases, borrow thousands of dollars in federal student aid. In the document, ITT misrepresented the value of its education – claiming it would be substantial – and that students who enrolled would get high-paying jobs upon graduation with a constant rate of earning growth. Prospective students were shown a projected annual salary over an estimated work life that misrepresented the projected annual earnings for ITT graduates at $100,000 more than the average earnings of workers with the same credentials.
Attorney General Frosh was joined in the letter by the attorneys general of Colorado, the District of Columbia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, Washington, and Wisconsin.
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