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For-Profit College Facing Federal Charges

For-Profit College Facing Federal Charges

(Washington, DC) -- A for-profit college with branches nationwide is facing serious charges from a federal watchdog.

The Consumer Financial Protection Bureau alleges that ITT Educational Services pressured students to take out high-interest loans to pay for the education at such branches as ITT Tech and Daniel Webster College.

The loans had interest rates of up to 16 percent, and had a default rate of over 60 percent. The lawsuit filed by the bureau asks for restitution for students, an injunction to prevent further loans and a substantial fine.

 

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