affiliated loan program for students alps deutsche bank

The settlement is with PEAKS Trust, a private loan program run by the failed for-profit college and affiliated with Deutsche Bank entities.

The agreement involves 47 states and the District of Columbia.

PEAKS was formed when private lending sources available to for-profit colleges dried up after the 2008 financial crisis.

The credit became due nine months later, but many students complained that they thought it wouldnt be due until six months after they graduated, similar to federal loans, according to the settlement.

ITT Tech used pressure tactics to coerce students into accepting loans from PEAKS after the credit became due, pulling students out of class and threatening to expel them if they did not accept the loan terms, the attorney generals office said.

For many students, the loans carried high interest rates far above those for federal loans.

Preying on students who were trying to educate themselves and better their lives is heartless, Yost said in a news release.

Its these types of bad actors that need to learn the basics of right and wrong I hope this will be the lesson they remember.

In 2016, ITT Tech closed all of its 137 campuses nationwide including nine in Ohio and filed for bankruptcy after the federal government restricted the schools access to federal student aid.

The school had been serving about 35,000 students and employed about 8,000 people.

Under the settlement, PEAKS agreed it will forgo collection of outstanding loans and cease doing business, the attorney generals office said.

Peaks will send notice to borrowers about the canceled debt and ensure automatic payments are canceled.

Many of the ITT students were from low-income backgrounds and forced to choose between a PEAKS loan or dropping out and losing credits theyd earned, since ITTs credits wouldnt transfer to most schools, the attorney generals office said.

Students with questions can direct them to PEAKS at customerservicepeaksloans.com or 866-747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.

Affiliated Loan Program For Students Alps Deutsche Bank