KOB Web Staff
Updated: September 15, 2020 12:03 PM
Created: September 15, 2020 12:02 PM
The settlement is part of an agreement reached by Attorney General Hector Balderas, along with 47 states and the Consumer Financial Protection Bureau.
“Students who are trying to achieve the American dream and make a better life for their families should not be taken advantage of by for-profit schools and be left with burdensome debt,” said Attorney General Balderas. “My office will continue to fight on behalf of students and families to ensure their safety and opportunities for prosperity.”
The states claimed ITT Tech and PEAKS developed a plan to offer loans that students would have trouble repaying.
Under the settlement, PEAKS has agreed that it will forgo collection of the outstanding loans and cease doing business. PEAKS will send notices to borrowers about the cancelled debt and ensure that automatic payments are cancelled. The settlement also requires PEAKS to supply credit reporting agencies with information to update credit information for affected borrowers.
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