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HomeStudent LoanIn Case You Missed It: A Nationwide Highlight On ITT’s Fraud and...

In Case You Missed It: A Nationwide Highlight On ITT’s Fraud and Abuse

Final month, we launched “Goals Destroyed: How ITT Technical Institute Defrauded a Technology of College students” — a report that includes tons of of pages of proof documenting ITT Tech’s large scale fraud.

Almost 200 pages, it’s a deep dive into the numerous methods ITT systematically defrauded debtors, together with false guarantees of gainful employment, dangerous and predatory enrollment practices, and a blatant prioritization of revenue over training. The report particulars unequivocally that ITT systematically and overtly lied to college students with a view to revenue from their federal monetary support.

The truth that any ITT debt nonetheless stays is unconscionable. That’s why we despatched the report on to Schooling Secretary Cardona in a letter and referred to as for him to cancel all ITT debt instantly. And whereas the Division of Schooling has but to take any motion, the report has continued to achieve traction.

NPR referred to as the report “an exhaustive deep dive into ITT Tech’s fraudulent apply.” Forbes states that it  “highlights [the] want to guard pupil mortgage debtors with stronger regulation of for-profit schools”. And Senate staffers have referred to as it the very best report because the HELP report.

In truth, simply final week, Senator Dick Durbin of Illinois used his time on the Senate flooring to deliver the “Goals Destroyed” report earlier than his Congressional colleagues.

The Senator talked in regards to the proof of abuse outlined within the report and the gross corruption of ITT executives.

“Potential college students have been lied to and bombarded with excessive stress techniques to get them to enroll and join increasingly and extra pupil loans. One former ITT Tech recruiter in contrast the working circumstances to a “sweatshop” the place all that mattered was hitting “a quota.” Appallingly, recruiters have been instructed to make use of the “Ache Funnel” they referred to as it – a set of eight questions designed to disclose each potential college students’ vulnerabilities. By figuring out a pupil’s ache factors – corresponding to working a useless end-job or feeling unappreciated – recruiters have been educated to use that ache and current ITT Tech as the answer…The end result: Modany and ITT shareholders made tens of millions. Taxpayers bought ripped off. College students ended up holding the bag with nugatory diplomas and a mountain of pupil debt, whether or not they completed or not,”

Senator Durbin, who has been a stalwart defender of pupil debtors and their rights, referred to as for the Division of Schooling to do higher.

“There are different ITT Techs on the market.  For the sake of scholars and taxpayers, the Schooling Division below this Administration should start to make use of its immense enforcement authority to guard them from swindlers and con-men.”

We couldn’t agree extra. The Division of Schooling has all of the proof it must cancel all ITT debt proper now – not only a small portion. What’s extra, the Division should take steps to make sure that different predatory faculties aren’t permitted to observe the ITT playbook and given a go to defraud future generations of scholars. This report exhibits precisely what’s at stake if predatory faculties aren’t held accountable.

Watch Senator Durbin’s remarks:

Learn extra in regards to the ITT Report



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