The Consumer Financial Protection Bureau (CFPB) announced in a press release that it filed a lawsuit against the for-profit school ITT Educational Services based on allegations of predatory lending and other unfair, deceptive, or abusive practices.
According to CFPB Director Richard Cordray, “ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line…We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default. Today’s action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics.”
Unfortunately, private student loans are a big problem for my clients, because as a rule, you cannot get rid of them in bankruptcy. And the worst part is, they often come with high interest rates, and they have very few repayment options. Federal student loans are much better in terms of repayment options, if you have the choice.
And according to the complaint filed in the CFPB v. ITT case, most ITT students drop out without obtaining a degree. So all of their claims about earning a high salary after graduation are inherently misleading, alleges the CFPB.
But if you are struggling with student loans and need help dealing with them, and you live in the Houston area, call our office for an in-office or telephone appointment to discuss your situation. The first visit is free, and we can offer you a low-cost analysis of your student loan situation, and the options available to you.