Settlement Website: ITTStudentClaimSettlement.com
Proof Of Purchase: Not applicable
Potential Claim Amount: Variable
Claim Form: Fill up Claim Form
Deadline For Updating Information: 06/07/2022
Final Hearing Date: NA
Daniel Webster College and the ITT Technical Institute are for-profit colleges run by the same company. According to the Project on Predatory Student Lending, from the Legal Services Center of Harvard Law School, the ITT students might have been taken advantage of by the unfair lending practices of the school. ITT made false promises of getting students jobs in growing fields and enrolled students in its programs based on them. These claims tricked students into applying for student aid so that they can attend ITT schools and ITT can reap benefits from the same. According to the ITT report, most of the students who attended ITT were either left with a useless degree or never received a degree in the first place.
In September 2016, three ITT companies, namely ITT Educational Services Inc., ESI Service Corp., and Daniel Webster College Inc. closed their schools by filing for Chapter 7 bankruptcy. They just had to show exorbitantly high student debt and their inability of repaying the same for their investment. According to StudentAid.gov. students at these locations who hadn’t graduated were offered the option of applying for a transfer of credits to another institution or applying for closed student loan discharge.
Former students filed a class-action lawsuit in 2017 to assert their claims in these proceedings. The bankruptcy court approved a distribution plan for some of the money in February 2022 from ITT’s bankruptcy estate to former students. According to the terms of distribution, Class members are eligible for cash payment. However, the payment amount will vary according to the available funds and the number of Class members participating in this class action settlement.
The distribution formula will be determined by the number of credits attempted or earned by a given student at Daniel Webster or the ITT Technical Institute. Each class member will be paid a portion of the available funds for distribution based on the number of credits earned and the number of credits they attempted to but did not earn divided by the total credits attempted and earned by all the class members. The earned credits will be given a weightage equivalent to three times the attempted credits for calculation purposes.
The bankruptcy website estimates initial payments to range from $10-$100. Members of the student class can either choose to receive payments through the electronic system or get a check in the mail. Class members won’t be eligible for the 7th July 2022 disbursement date if they do not update their information by 7th June 2022 on receiving a notice from the ITT bankruptcy settlement. The money of these class members will be reallocated to the next distribution. Class members who didn’t receive a notice but believe they meet the terms of the settlement can submit an inclusion request on the settlement website.
The law firm of Jenner & Block LLP and the Project on Predatory Student Lending is representing the student class in the ITT bankruptcy. While no fees have been sought by Jenner & Block in the ITT bankruptcy, fees amounting to 5% of the total amount distributed by the ITT Chapter 7 trustee to the student class have been approved by the bankruptcy Court as fees to the Project on Predatory Student Lending and.
Eligibility For Making Claim: Class members constitute individuals who attended the Daniel Webster College between 1st January 2009 and 16th September 2016, or ITT Technical Institute between 1st January 2006 and 16th September 2016. According to the terms of the settlement, notice must have been sent indicating you were a former student making you entitled to the funds distributed from ITT’s bankruptcy estate. The settlement website has listed around 450000 students as qualifying for this class.
