CU Organizations Agree to Pay $7.5 Million to Settle ITT Student Loan Nightmare

Credit union organizations agreed to a motion to settle claims with ITT Technical Institute bankruptcy trustee.

As part of the settlement agreement, credit union organizations will pay almost $7.5 million.

The credit union organizations covered by the motion include Student CU Connect CUSO, LLC, The Rochdale Group, Inc., Elements Financial Federal Credit Union (formerly known as Eli Lilly Federal Credit Union), Bellco Credit Union, Credit Union of America, Directions Credit Union, Veridian Credit Union, Workers Credit Union and CommunityAmerica Credit Union.

Also, Student CU Connect CUSO will have an allowed general unsecured claim in the amount of $127,844,857, which constitutes a 15 percent reduction of the amount claimed by the CUSO.

Read the motion.

Read the Indianapolis Business Journal article.