Iowa's AG joins in lawsuit filed against ITT Educational Service - KTIV News 4 Sioux City IA: News, Weather and Sports

Iowa's AG joins in lawsuit filed against ITT Educational Services


WASHINGTON (KTIV) Iowa's attorney general has joined 12 others across the country to sue the ITT Educational Services alleging it pushed students into high-cost private student loans knowing they would likely end in default.

ITT Education Services has more than 140 institutions, in 40 different states, including the tri-state area.

The Consumer Financial Protection Bureau says the Indiana-based college chain projected a default rate of 64% on the loans it provided. Some of the loans had interest rates as high as 16%.

"We want to do things that are effective and efficient with great fairness for the state of Iowa," said Tom Miller, Iowa Attorney General.

This is the first such actions the bureau has taken against a for-profit college.

An ITT spokesperson says the bureau's claims are without merit, but she wouldn't comment further on pending litigation.

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