LEGAL SERVICES CENTER OF HARVARD LAW SCHOOL
CENTRO DE SERVICIOS LEGALES
122 Boylston Street
Jamaica Plain, Massachusetts 02130-2246
TEL: (617) 522-3003 • FAX: (617) 522-0715
Sen. Richard Burr
217 Russell Senate Office Building
Washington DC 20510
202-224-3154
January 23, 2017
Dear Senator Burr:
The Project on Predatory Student Lending recently filed a claim in the bankruptcy case of ITT on
behalf of former students. The basis of the claim, in addition to the allegations and evidence
developed by federal enforcement agencies, state Attorneys General, and former ITT employees,
is the testimony of over 2000 former ITT students. This testimony presents a consistent picture
of ITT’s systematic deceptive recruiting and financial aid practices.
Over the last decade of its existence, ITT took in over $8 billion in federal student aid, the
majority of which came in the form of federal student loans. This allocation has not been a good
investment for students or taxpayers. ITT used federal funds to promote its programs through
false advertising and coercive sales tactics. ITT’s investment in education was dwarfed by its
expenditures on advertising and executive compensation.
The results speak for themselves. Data from 2014 show that on average, ITT graduates earn on
average the same or less than high school graduates with no college education. Approximately
one in five ITT students defaults on their federal student loans within three years. Of the
remaining non-defaulted ITT borrowers, less than half have repaid a single dollar of the principal
of their loan balance.
To illustrate how ITT’s unfair and deceptive acts and practices have affected your constituents,
we have attached a copy of the complaint that has been filed, along with the accompanying
testimony from your constituents in North Carolina who attended ITT. These statements
represent just a sample of the harm ITT inflicted on your constituents, countless others in your
district, and many more across the country.
As you know, federal law provides for student loan debt relief for students whose schools misled
them or engaged in other misconduct. Please help your constituents, former students of ITT, get
the federal student loan relief that they deserve. Ask the Department of Education to forgive
federal student loans for former students of ITT.
Respectfully,
Project on Predatory Student Lending
Legal Services Center of Harvard Law School
TESTIMONY OF FORMER ITT STUDENTS FROM NORTH CAROLINA
The following testimony comes from your constituents in North Carolina. It was filed on January
3, 2017 in the United States Bankruptcy Court for the Southern District of Indiana, as part of the
ITT bankruptcy proceedings.1 The testimony was filed in support of a class action adversary
proceeding complaint on behalf of all former ITT students. 2
"It was expand to me by the community college of the air force that I would have to take all
general education classes again to get a CCAF degree." (ID 7036)
"I have participated in debt consolidation. My credit score is low. My marriage is in danger
because of constant stress of how we are to pay for everything.[] Thus burden has forced me to
have to retire from the military because I had my security clearance revoked and could no longer
serve my country. I have emotional and physical damage because of this." (ID 7036)
"I have participated in debt consolidation. My credit score is low. My marriage is in danger
because of constant stress of how we are to pay for everything. I'm in fear of wage garnishment.
Thus burden has forced me to have to retire from the military because I had my security
clearance revoked and could no longer serve my country. I have emotional and physical damage
because of this. [] The shame of losing my military position due to financial hardship. The
military would not renew my security clearance and I was forced to retire. My wife and I
constantly fighting about how we are to pay an extremely high monthly student loan payment. I
get headaches all the time. I can't sleep because I worry and blame myself for going to school. I
feel like I wasted my money and hate myself for getting a worthless degree." (ID 7036)
"The shame of losing my military position due to financial hardship. The military would not
renew my security clearance and I was forced to retire. My wife and I constantly fighting about
how we are to pay an extremely high monthly student loan payment. I get headaches all the time.
I cant sleep because I worry and blame myself for going to school. I feel like I wasted my money
and hate myself for getting a worthless degree." (ID 7036)
"They never explained to me the total cost. If I would have known the total cost of the program
was going to be $50000+ I would have found an alternative or have not enrolled at all. To my
understanding I had also thought the military benifits would have pay for most of it if not all of
it. After graduation I fine out my military benefits did not even cover a quarter of the cost. Now
I'm being harrassed to make student loan payments that are as expensive as a house mortgage."
(ID 7036)
1 In re ITT ESI, No. 16-07207-JMC-7A (Bankr. S.D. Ind. filed Sept. 16, 2016).
2 Villalba et al. v. ITT ESI et al. No. 17-AP-50003 (Bankr. S.D. Ind. filed Jan. 3, 2017).
"To my understanding I had also thought the military benifits would have pay for most of it if not
all of it. After graduation I fine out my military benefits did not even cover a quarter of the cost.
Now I'm being harrassed to make student loan payments that are as expensive as a house
mortgage. The whole process of the loan application happened so fast and ITT Tech did not give
me the option to review the loan application to make sure I was able to afford to have it." (ID
7036)
"The woman that recruited me promised high paying jobs, internships, that the dept of homeland
security highly praised and accredited the NSA program and also that they place like 85 percent
of grads. This was not the case, in fact the best thing the career services dept has done for me is"
(ID 8098)
"The classes were so outdated and old. [O]ne of my classed didnt even have course material for
it yet because it was something they threw in the program to get more money i suspect but it was
terrible. [W]e had to use images they would get online or find for free and copy to complete labs
and classwork." (ID 8098)
"ITTs instructors are some of the worst teachers I have ever encountered. Some would put false
grades on tests and labs just to pass students. I caught on about mid way through when i was
already to deep in debt to quit. I actually put down several wrong answers on a test to see if what
i thought would happen would. And sure enough i came out of the test with a 100 percent
knowing I put down wrong answers. I also know of one of my classmates who skipped just about
all the classes and was supposed to be dropped but somehow stayed on track with me in my
classes and i held a 3.5 gpa. funny how that happened." (ID 8098)
"When i signed my paper work to go to school there the lady was almost harrasing to an extent.
they would throw a bunch of paperwork out on the table that would build up their school and
how it will change your life without going over the fine print. I was unaware that you could even
use private loans for school. I didnt even hear private loans come out of any bodies mouth
there. . . . now i have 8 loans in my name for a worthless degree that i have not even got in the
mail yet and iv been out for 3 months." (ID 8098)
"When i signed my paper work to go to school there the lady was almost harrasing to an extent.
they would throw a bunch of paperwork out on the table that would build up their school and
how it will change your life without going over the fine print. [] They would pressure you to sign
quick. I would have to sign something every quarter or i would be kicked out. [L]ittle did i know
they were taking loans out all the time. [T]hey would say its just making sure your fasfa is up to
date or current." (ID 8098)
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"I now have a 26000 dollar debt to pay for nothing of value. [N]o job wants me with ITT on my
resume and the classes were terrible along with the instructors and staff." (ID 7772)
"This is also emotionally draining and has caused me depression. I feel like I am living a
nightmare. My dream was to be able to take care of others after graduation and I feel as though
this school is taking that dream right out of my grasp." (ID 9227)
"I never understood the amount of the loans necessary. I would go into an office with a financial
aid officer, type in my information. The officer would then take over typing. I would then type in
my information again for approval and that was it. There was never a breakdown of what exactly
I was paying for." (ID 9227)
"I have found it difficult to find any other employment due to ITT Technical Institute being on my
resume because of the negative reputation this school has acquired due to its business practices
and accreditation problems." (ID 8280)
"Failing to provide support in finding a job post graduation although this was promised multiple
times before starting the program and also throughout my time at this school. When I did find a
job on my own they tried to take credit for it stating they needed to know my starting pay,
supervisors name and shift I worked." (ID 8280)
"Many of the credits do not transfer to other schools, leaving me to have to re-take classes at
additional cost." (ID 8280)
"Towards the end of my time at ITT we were told that we would need to fundraise money to help
pay for our gradation and nursing pinning ceremonies because the school would not pay for that
although in the beginning it was my understanding that this was covered in the tuition costs."
(ID 8280)
"I explained to them i gad a criminal record and they assured me that ITT technical institute
would guarantee me a job after i completed my classes and took out thus high interest loans."
(ID 5610)
"[I] have it on my resume no one will even call me back. it was bad enough that i didnt get a
proper education but now this its horrible." (ID 9581)
"[T]hey told me they have a 95% job placement rating. [A]fter graduation i only recieved one
call in 5 years. [W]hen i called to go in there, set up an appointment, got there they were never
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there or available." (ID 9581)
"They stated on many occassions that their job placement level for graduates was in the 90th
percentile. Thy also stated that they would help to find paid internships while taking the
program. My entire time there, I never even heard of someone getting an internship. Also there is
only one place that I know of that anyone was ever hired to from ITT and that is HCL America,
one the hire rate is extremely small, only 3 from my graduating class and the pay rate was
grossly less than the industry average and less than even the rate that recruiter's were paying the
no experience candidates. Also the Network/System Administrator jobs thatvthey say you are
learning are impossible to get without an additional 10 years of on the job experience. Definitely
not the $25-$30 dollars an hour that I was tild that I would be making straight out of school."
(ID 8946)
"They promised that I would be qualified for a system administrator position which is a 100%
lie. Those positions generally require a bachelor's degree AND 10 years of industry experience.
Upon completing the Associate's portion of my education I still have trouble being considered
for even entry level IT opportunities because ther eis no training for the positions that are
prerequisites to the system administrator jobs. 2-5 years minimum in ticketing systems, helpdesk,
desktop support, troubleshooting, remote desktop assistance, A+ certification, Network +
certification; all of which are just the basic prerequisites before you even have a chance to
possibly be licky enough for someone to give you an opportunity as a Jr System Administrator. I
had 3.96 GPA and I would not be able to pass the A+, Network+ nor the Microsoft Server
Certification exams that were listed on the front of the text books." (ID 8946)
"I am afraid that I will not be able to continue on to my Bachelor's degree because of the
reaulting debt and credit issues that I have a result of my ITT experience." (ID 8946)
"I was originally told that my loans would be processed once a year, I was not told that they
were processing multiple loans per semester during the once a year occurrence. I thought I was
signing for x number of loans for the entire year, not x number per semester." (ID 8946)
"In order to enroll in another school I would have to retake most of the classes I took for my
degree because credits with ITT are non-transferable. I was not informed of this before I started
classes with ITT or I would not have attended the school." (ID 4461)
"Plus, the further into the quarters we went, the higher the turnover of teachers to subs that
knew nothing about what the subject matter entailed. A lot of information was skipped over, due
to time and a rush to get students graduated by their dates. The commercials promised "handson training" and experiences. Slim to none, in my opinion. We were given a lot of data to absorb
and learn, and not enough time to truly make it part of ourselves as the professionals we were
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being trained to be." (ID 8033)
"They basically put all of the loans together and said that there were loans that we would have to
pay back and some that we did not. But, I did not fully understand the process. And, when it
came to refinancing for the next quarter, all they had me do is sign a couple of things and didnt
discuss details." (ID 8033)
"Yes, I was told that ITT Tech had a 95% job placement in the Information Security field. Also,
there support in providing job leads was lacking. The job leads that was coming my way was not
dealing with Information Security, but were helpdesk positions and the pay was not close to what
they stated I would make." (ID 7406)
"I was told by ITT that employers specifically look for ITT graduates when they are looking at
resumes, and that going to this school would significantly increase my chances of getting a very
good job. I believe now that having my degree from ITT on my resume may be part of the reason
I have NOT been able to get a degree-related job so far. I have applied to multiple jobs that I am
definitely qualified for but have not gotten so much as an interview or call back." (ID 9123)
"They also said they would help me find a job before I graduated and that if I ever lost my job
they would help me find another one not matter how long it had been since I graduated. I
contacted the school multiple times after I graduated to get help finding a job and they hardly
returned any of my messages. There were a couple times they said they sent my application to a
certain job, but when I called the company to verify they received my application I was told the
position had already been filled. One job even said they had filled the position 2 days before I
even sent my application but the school administrator told me the job was currently open. I
never heard anything back from any of these supposed jobs they sent my resume to." (ID 9123)
"At the beginning of my second year at ITT I was told that there was a class I could take that
would help me get my Microsoft certification. I asked about the class multiple times throughout
my second year and was always told that it was not available yet. I never saw any evidence that
this class existed and was never able to take any kind of class like this." (ID 9123)
"The payments and interest rates are so much that my wife and I struggle to make the payments
and can barely make the mortgage payment and have something to eat, not to mention the other
daily bills that come with life. We have tried to contact the programs about getting some kind of
help but they can not offer anything. Peaks loan in particular threatened to garnish wages and"
(ID 9123)
"Because I was told that I had to enroll in both the fed loan and peaks programs I owed a total
of around 70,000 dollars. I had to start repaying this 6 months after I graduated even though I
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had not found a job in my field or gotten the help I was promised. I am only making about
20,000 dollars a year instead of the specific 6 figures I was promised. The payments and interest
rates are so much that my wife and I struggle to make the payments and can barely make the
mortgage payment and have something to eat, not to mention the other daily bills that come with
life. We have tried to contact the programs about getting some kind of help but they can not offer
anything. Peaks loan in particular threatened to garnish wages and forcefully take money if we
could not pay. We have payed something to peaks every month, even if it is not the full amount
owed. Even though we do this, we are still harassed by phone calls at all hours of the day. Since
we are overdue a certain amount on the account we now have to give our bank account number
to make a payment when we had just been doing it by credit card. These loans have significantly
increased our stress the last 4 years and have made it very hard to survive. ITT definitely treated
federal and private loans as if they were the same thing. When I first got accepted to ITT they
told me I needed to sign up for the Fed Loan program and the Peaks Loan program if I wanted
to go to that school. They did not explain anything about either program or give me any other
options. I also feel like they refused to disclose the loan terms because they just scrolled to the
bottom of a screen and told me where to sign. I was not worried at the time because I was
guaranteed that I would have a great job and would be able to pay the loans back no problem.
After I graduated I was told I owed a small loan directly to the school and I was not told
anything about that ahead of time." (ID 9123)
"ITT definitely treated federal and private loans as if they were the same thing. When I first got
accepted to ITT they told me I needed to sign up for the Fed Loan program and the Peaks Loan
program if I wanted to go to that school. They did not explain anything about either program or
give me any other options. I also feel like they refused to disclose the loan terms because they
just scrolled to the bottom of a screen and told me where to sign. I was not worried at the time
because I was guaranteed that I would have a great job and would be able to pay the loans back
no problem. After I graduated I was told I owed a small loan directly to the school and I was not
told anything about that ahead of time." (ID 9123)
"I was not worried at the time because I was guaranteed that I would have a great job and
would be able to pay the loans back no problem." (ID 9123)
"When I first got accepted to ITT they told me I needed to sign up for the Fed Loan program and
the Peaks Loan program if I wanted to go to that school. They did not explain anything about
either program or give me any other options. I also feel like they refused to disclose the loan
terms because they just scrolled to the bottom of a screen and told me where to sign." (ID 9123)
"I thought everything was taken care of through loans and grants then they tell me I have to pay
monthly to ITT tech for my last year." (ID 8550)
"I have witnessed that when having ITT Technical on my resume that most employers don't want
to talk to me about a position because they felt that because I went to that school I wouldn't have
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the knowledge or skills to be a good nurse. I even remember a nurse at one of the hospitals that
we did rounds with tell us that they don't hire ITT Techs students. When applying for jobs I
noticed that if I didn't put ITT tech on my resume or application, that would be the only time I
would get a call from an employer but once they found out they didn't want to talk to me
anymore. Most places wouldn't hire because I was a graduate of ITT and just have the additude
that because I went thru their program I wouldn't be an effiecent nurse. My job that Im working
now was with the same employer will I was in school, they were the only ones who would hire
me and not care about where I went to school[.]" (ID 8405)
"When asking how much the nursing program would be they said around 40,000, but threw out
my time there I had noticed that they were telling all of the students in my nursing class different
cost. Each time I asked, the price would change and I wouldn't get a true price." (ID 8405)
"They never really explained the paperwork to me and so basically I didnt know what I was
getting in grants and how much of a loan I would have to do each quarter. What I couldn t
understand was If I was getting grants then why was I having to take out so many loans? No one
could or wouldnt explain it to me they would just say you need to sign this paper. I know that
was probaly dumb on my part but I knew if I didnt finish this program then I would be left with
loans to pay back with no degree to show for it." (ID 8405)
"They never really explained the paperwork to me and so basically I didn't know what I was
getting in grants and how much of a loan I would have to do each quarter. What I couldn't" (ID
8405)
"I don't even use it on my resume[.]" (ID 8065)
"I was lead to believe that career services would help finding well paying jobs in my field of
study, but the only job alerts were for jobs in the fast food and service industries that available to
anyone with or without a degree." (ID 8065)
"My recruiter stated that ITT credits would be transferable. I would have to start all over at a
community college." (ID 8065)
"I never knew how much my loans were for or the terms until my 3rd year. Each year I would go
to finiacial aid to sign the papers but we never went over the amount, I assumed they were giving
me grants." (ID 8065)
"Employers do not take the schools serious on your resume, it is embarrassing. They did not tell
us anything about being a for-profit school and having lawsuits in the past." (ID 8064)
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"They said that they had 90% employment rate. This is false no one I graduated with found jobs
right after school.Promised starting salaries of 30k yearly. We were lucky to find a job for 20k."
(ID 8064)
"I wanted to finish out my bachelors at a different school and found that none of my credits
transferred this was not disclosed when I signed up." (ID 8064)
"I have been unable to save for retirement, and provide for my family at times." (ID 8064)
"I could not afford any more debt. This is the same reason I have not gone back yet." (ID 8064)
"They took advantage of young people that are new at school. I did not know what the difference
was between loans and they did not tell us. I ended up with private student loans that I could not
afford. they told us the program was 1 price and bye the time is was over there were additional
fees that were not discussed but later told about when the process was near complete." (ID 8064)
"ITT Tech filed bankruptcy and has now shut down because of continuous federal investigations
& their accrediting agency (ACICS) no longer being recognized[.] I have heard it suggested I
remove ITT from my resume, however I have no other college to include[.]" (ID 9439)
"Was going to try to get my Masters but was told that none of the credits would transfer." (ID
9431)
"Stress from not being able to find a job was a leading factor in a divorce." (ID 9431)
"One school told me I was at the limit of loans and I want to finish my education but can't afford
it." (ID 8489)
"They did all our financial aid for us , they never gave us our pell grants. When I asked they said
they dont issue pell grants to students anymore." (ID 8489)
"The school would fire and hire teachers that had nothing to do with the field, i was in and some
days we just sat in the classrooms by ourselves, with no instructor, we have also had 3 rotating
deans that just left." (ID 8422)
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"They did not explain about the difference between federal and private student loans. I thought i
was only using federal loans but they also signed me up for private loans." (ID 8190)
"I had to find out from recruiters that in order for me to get looked at by employers, to remove
my school name. No one wants to hire ITT students except call centers making less than 15
dollars an hour. [H]ow do you repay a huge 80000 + thousand dollar loan with 15 dollars an
hour." (ID 8128)
"I was told upon completion that I was getting an NSA 4011 certification, I dont even know if it
really exists. [A]ll the certification courses i have taken covered materiel not taught in class,
especially after 2010." (ID 8128)
"Also was told my credits would transfer so I could go on to get a masters degree. No one wants
these credits except other paper mills (U of Pheonix,Kaplan,ect) also worthless." (ID 8128)
"[I]t was hard to find a job in my with ITT Tech on my resume. I have it on my Link in account
and resume still because I worked hard for it and even though companies didn't see the value I
worked hard to receive a piece of paper that has no value to to the outside world. Now that I
have my Bachelors degree from ITT Tech jobs didn't even look at it as being accredited or place
any value on the degree. I have a Two year degree that I received from York Technical college
from south Carolina and that is the degree that I have received my current job from and my
experience." (ID 6352)
"I was contacted by a advisor at ITT tech and he said that I could make $80,000 when I graduate
with a Bachelor's Degree in science. I asked questions about job placement and I was told that
ITT Tech students usually get jobs right out of school making high salaries." (ID 6352)
"What led me to call or develop a interest in ITT Tech was the commercial that explained that the
school had qualified teachers, that were experienced in that career that career path. Once I
attended ITT Tech they did instructed that taught classes that they had no experience in , and our
lap didn't work. You would ask the instruct for help he wouldn't know how to get the lap to work.
In most cases we were told that we would skip those lap and move on to something else. Also
while at ITT Tech my instructors would explain that we had old outdated software. ITT Tech was
teaching an older version of windows server and a older versions of windows platform. [] The
school was behind on technology in most cases." (ID 6352)
"Other colleges or university didnt even accept credits from ITT Tech. I was trying to enroll for
my master degree and the school would except my Bachelors degree from ITT Tech." (ID 6352)
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"I was told that my financial aid had been exhausted because of how much I was charged by ITT
Tech." (ID 6352)
"I never understood what my total Balance was, my signature was electronically signed and
there were many forms that I do not remember signing[.]" (ID 9309)
"I stress daily knowing I have to pay on a loan I didnt know about. Ive gone into depression
because I feel like a failure because I cant graduate due to them using all my financial aid on
just my associates degree." (ID 9141)
"My financial aid was exhausted to the point I had no more money left to attend college for my
BA degree." (ID 9141)
"They took a private loan out that I didnt know about til repayment came. The recruiter was fast
talker so much She never let me fully look over what I was signing, I trusted that she was helping
me make the right decision." (ID 9141)
"I was never informed that the classes that I took would not be useful for getting licensed in
certification exams." (ID 7731)
"I was lied to and misled that the staff and teachers were the best in the country. I took classes
where the teachers would leave in the middle of the semester and quit. Sometimes new teachers
would show up out of nowhere and they didn't know what they were teaching. The equipment
wouldn't work and I was constantly being called and harassed to continue my education with
ITT and to take more loans. If I logged into the student portal they would always try to get more
information from me to sell to me and my family. I felt that I was a victim of predatory lending
and fraud was committed on me." (ID 7731)
"I was lied to and told that I could transfer to any school once I completed my ITT courses. I was
lied to and never told that they were not accredited. I was never informed that the classes that I
took would not be useful for getting licensed in certification exams. I tried to transfer my credits
to Piedmont College, Gaston College and other and they would not accept them." (ID 7731)
"My debt became so great with Navient that to take out more loans would get me in trouble. I
have stopped going to school all because I went to ITT Tech. I cant enroll anywhere because of
my debt caused by deceptive and misleading practices of ITT Technical Institute." (ID 7731)
"Although I'm very knowledgeable in my field of study do to my own experiences putting ITT
Tech on my resume had no effect in fact it has the opposite effect. Employers look at it as though
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uneducated and inexperienced in that field." (ID 7907)
"Was made to sign documents about job placement in the middle of my last semester, was told if I
didn't sign I couldn't continue going there. Also I have a defaulted credit on my report due to
them charging me for classes I never took." (ID 7907)
"During the recruitment process they explained that their national accreditation was far
superior to being regionally accredited yet later on I found out none of the credits I received for
the classes I had taken will transfer anywhere. I called several schools all refused to transfer my
credits the only thing they could offer was for me to start all over which would put me further in
debt. That I cannot afford." (ID 7907)
"With $30,000 in student loans unpaid for it has ruined my credit. Buying a house regardless of
my income is nearly impossible. No matter what I do until this goes away my credit will forever
be ruined. Also I have a defaulted credit on my report due to them charging me for classes I
never took." (ID 7907)
"Still to this day years later I receive phone calls daily harassing me about ITT Tech." (ID 7907)
"After submitting all my paperwork to other schools and they found out that I had large amount
of debt due to student loans they would not enroll me into their school because it looked as
though I would not pay for it." (ID 7907)
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