Former Texas ITT Students to Receive $27 Million in Debt Relief Settlement
When the temporary credit became due, ITT pressured and coerced students into accepting high-interest loans from PEAKS, including threatening expulsion.
Press Release
AUSTIN – Attorney General Ken Paxton announced a settlement agreement with PEAKS Trust, a private loan program run by ITT Tech and affiliated with Deutsche Bank entities, granting over $27 million in debt relief to former ITT students in Texas. This is the second settlement of its kind in just two years. In June 2019, Attorney General Paxton participated in a $168 million settlement with Student CU Connect CUSO, resulting in debt relief for 18,664 former ITT students.
“I am proud to hold ITT accountable for its deceptive trade practices and provide relief for students who were burdened with unfair student loan debt while pursuing and honest education,” said Attorney General Paxton. “Students should not face the choice of enrolling in unfair loans or dropping out and losing their hard-earned credits. Today’s victory sends a clear message that attempting to deceive and financially abuse students will not be tolerated in Texas.”
After the 2008 financial crisis, ITT developed a plan with PEAKS to offer students temporary credit to cover the gap in tuition between federal student aid and the full cost of the education. However, when the temporary credit became due, ITT pressured and coerced students into accepting high-interest loans from PEAKS, including threatening expulsion.
Under the settlement, PEAKS agreed to 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. PEAKS is also required to supply credit reporting agencies with information to update credit information for affected borrowers. Students may direct questions to PEAKS at customerservice@peaksloans.com or (866) 747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.
Read a copy of the settlement here.
Students Rights to Free Speech and Due Process
Attorney General Ken Paxton led 15 states in an amicus brief filed in the United States District Court in the Southern District of New York, defending the Department of Education’s reaffirmation of Title IX’s commitment to protecting students from actual harassment while upholding free speech and fair process.
Press Release
AUSTIN – Attorney General Ken Paxton led 15 states in an amicus brief filed in the United States District Court in the Southern District of New York, defending the Department of Education’s reaffirmation of Title IX’s commitment to protecting students from actual harassment while upholding free speech and fair process. The Department of Education’s “Final Rule” bolsters the anti-discrimination purposes of Title IX without infringing free speech or due process rights.
“The Constitution applies to every American, and the Department of Education’s ‘Final Rule’ provides robust protection for individual rights where previous regulations and guidance failed. The Supreme Court has long recognized that students subject to disciplinary proceedings are entitled to due process,” said Attorney General Paxton. “Academic institutions cannot unlawfully deprive students of their constitutional rights to free speech, due process, or fair trial.”
Without safeguards, academic institutions can and have eschewed due process and imposed life-altering consequences on students without affording them the opportunity to defend themselves. The vast majority of colleges and universities currently deny students the right to present evidence or cross examine witnesses, and less than half require that fact-finders be impartial during investigations.
Read a copy of the amicus brief here.
TAMUK - SAT/ACT Optional For 2021 Admission
Texas A&M University-Kingsville has decided to make the SAT and ACT optional for admission in the spring, summer and fall of 2021.
Press Release
Officials at Texas A&M University-Kingsville have announced they will make optional the requirement of First-time in College (FTIC) applicants to provide SAT or ACT scores to be considered for admission for the spring, summer and fall sessions in 2021.
“Due to COVID-19, there has been uncertainty about whether the ACT and SAT tests will be consistently accessible to all prospective students. As such, Texas A&M University-Kingsville has decided to make the SAT and ACT optional for admission in the spring, summer and fall of 2021,” said Dr. Maureen Croft, vice president for enrollment management.
“We believe that this will ensure fairness in the admissions process during these unprecedented times,” she added. “Applications will be reviewed holistically with or without SAT or ACT scores. We encourage students to provide additional information on their application such as letters of reference, academic achievements, extracurricular activities, community service, awards and other factors that support an applicant’s ability to succeed at Texas A&M-Kingsville.”
Students who have been denied admission should know that the university’s Admission Appeal Process remains in effect without change. Anyone with questions are encouraged to contact the university at admissions@tamuk.edu or 361-593-5372 (JESC).