Former ITT students want to be recognized as creditors in bankruptcy case
CARMEL, Ind. – Former students want to be considered creditors in former for-profit college ITT Educational Services Inc.’s bankruptcy case.
According to court documents filed earlier this week, five students are asking that they and thousands of other students who attended ITT from 2006 through 2016 be legally recognized as creditors.
The closure, which was the result of a federal crackdown that tightened regulations on for-profit colleges, affected more than 35,000 students and 8,000 employees.
“ITT students are the true creditors of ITT. They seek recognition as creditors in this bankruptcy, a fair apportionment of the remaining estate, and an adjudication of their claims that will clear the path to loan cancellation in collateral proceedings,” the filing said.
“Plaintiffs seek to represent a class of students who were enrolled in ITT programs between 2006 and 2016 and were harmed by ITT’s deceptive conduct, and breach of contractual obligations, including its breach of the implied covenant of good faith and fair dealing.”
The filing accused of ITT of building its business model around student debt and said it misrepresented job placement rates and salary expectations. Students in more than 30 states reported instances of inflated salaries, the filing said.