ATLANTA, Ga. (CBS6) -- ITT technical Institute, a now shuttered for-profit school, is accused of pressuring students into accepting loans with unusually high interest rates and a misleading pay-back calendar. Even threatening expulsion if a student didn't sign on the dotted line.
The state's consumer protection unit told CBS46 that 417 students will have $4.1 million in debt wiped clean after a flurry of lawsuits and a multi-year investigation involving ITT and the lender.
"The Attorney Generals office is very pleased with this settlement," said Shawn Conroy with the Office of the Attorney General. "We hope it sends a message this type of abusive lending practice wont be tolerated."
The loans targeted a small population of students and was carried out for two years.
ITT shut its doors three years ago, partly due to complaints over their loan practices and because the Department of Education stripped its funding.
Those effected will be notified, but anyone with questions is asked to call the AG's office at 404-651-8600.