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Even in Bankruptcy, For-Profit College Chain in Hot Water

Former Students File Legal Action Against Bankrupt ITT Tech

It’s been four months since for-profit college chain ITT Tech closed all of its campuses, including its Albuquerque location near Ellison and Jefferson. The shutdown came just before a bankruptcy filing on September 16th of last year, but ITT became the subject of another legal action earlier this month.


The Project on Predatory Student Lending of the Legal Services Center of Harvard Law School has brought a 7.3 billion dollar class action lawsuit against the company. Five former ITT students were initially involved in the suit, but the class includes hundreds of thousands of former students across the 37 US states in which ITT operated.

Eileen Connor, director of litigation for the Project on Predatory Student Lending, blasted the school in an interview for Harvard Law Today, calling it, “one of the biggest and most predatory for-profit colleges.” Connor also said ITT, “cratered because it failed and defrauded students,” and, “used aggressive tactics to silence whistleblowers and students about its illegal practices.” (1)

Students Hope Court will Name Them as Creditors in ITT Bankruptcy

They also hope their case will persuade the bankruptcy court to rule that ITT Tech violated their rights under consumer protection regulations. Such a ruling would be the first step on the path to forgiveness of Federal student loan debt for former ITT students.

ITT has faced legal action in response to alleged deceptive business practices before. The school was named as a defendant in lawsuits by 13 state Attorneys General, the SEC, and the CFPB. Among those 13 states is New Mexico, which sued ITT in 2014. The bankruptcy trustee sought to escape the New Mexico suit, along with other state and Federal suits in October of last year.

If you were a New Mexico ITT Tech student in the past 10 years and have unpaid student loans, you may be eligible for help with your debt. The office of the New Mexico Attorney General is asking any such students to call them at 1-866-627-3249.


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We are a debt relief agency and our New Mexico bankruptcy lawyers have practiced law for a combined 50 years. Our services include helping individuals and couples file for bankruptcy relief under the Bankruptcy Code.


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