Federal investigators allege that the school's financial aid staff pressured students to rush through an automated application process. Only later did students discover that they were on the hook for loans with interest rates as high as 16.25 percent, which provided a significant source of income for the school system.
"We don't comment on pending litigation, other than to say that we believe the bureau's claims are without merit and we intend to vigorously defend ourselves against the charges," Elam said.
The crux of the bureau's complaint is that ITT officials "knew that most of its students would ultimately default on their private student loans," with internal projections for a default rate hovering at 64 percent.
"ITT marketed itself as improving consumers' lives, but it was really just improving its bottom line," said
Since many credits earned at ITT don't transfer to other schools, the school system allegedly used the prospect of expulsion to coerce students into taking out the loans, the
Tuition for an associate's degree at ITT can cost more than
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