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 Rep. David Price 2108 Rayburn HOB Washington DC 20515-3304 202-225-1784 January 23, 2017 Dear Representative Price: 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’s 4th congressional district 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’S 4TH CONGRESSIONAL DISTRICT The following testimony comes from your constituents in North Carolina’s 4th congressional district. 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 "[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 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) 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).
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