- A bipartisan group of 24 AGs, led by Colorado AG Phil Weiser and Oregon AG Ellen Rosenblum, filed a borrower defense application with the U.S. Department of Education to request full student loan relief, including the discharge and refund of loans, for student borrowers who enrolled in ITT Technical Institute (“ITT”).
- The application alleges that ITT misled prospective students and enticed them into enrolling in its programs by showing them a chart purporting to show the value of its education in terms of projected annual salary, which significantly inflated graduates’ projected income and misrepresented the financial gains that students could expect from an ITT program.
- The application argues that ITT’s conduct violated state consumer protection laws and that, therefore, student borrowers are eligible for borrower defense. The application further argues that it is appropriate to grant relief to all eligible borrowers as a group without requiring individual applications from each borrower because the states already identified the cohort of borrowers to whom ITT made consequential misrepresentations.