September 20, 2020

A.G. Patrick Morrisey reaches settlement to cancel over $1-million in West Virginian student debt

A.G. Patrick Morrisey reaches settlement to cancel over $1-million in West Virginian student debt


BRIDGEPORT, W.Va (WDTV) – Attorney General Patrick Morrisey announced him, alongside a coalition of 48 attorneys, reached a $330-million agreement with PEAKS Trust 2009-1 to erase student loans across 46 states.

The agreement will mean $1,085,726 in debt will be erased for 138 West Virginians. All of those are former students of ITT Technical Institute, a for-profit college that has since gone bankrupt.

According to a release by the Office of the Attorney General, “The agreement alleges ITT also used pressure tactics and coerced students into accepting loans from PEAKS after their temporary credit became due. In some instances, students were pulled out of class and threatened with expulsion if they did not accept the loan terms.”

A full copy of the $330-million agreement can be found here.

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