FAQ Proposed Student Class Settlement Agreement

1. Am I part of the Settlement Class?

You are part of the Settlement Class if you attended ITT anytime from January 1, 2006 to September 16, 2016, or if you attended Daniel Webster College from January 1, 2009 to September 16, 2016.

2. I went to ITT before 2006.

If you only attended ITT before 2006, you are not part of the Settlement Class and you still maintain all of your legal rights.

3. Does this settlement mean my private and federal loans will be cancelled?

No. Right now, the trustee can only cancel debts owed directly to ITT. Therefore, the settlement does not cancel federal or private loans. The settlement would cancel nearly

$600 million in debts that were owed directly to ITT, sometimes called “Temporary Credits.” It will also return $3 million to students who made payments on those debts since ITT declared bankruptcy in September 2016. There will be accurate credit reporting showing that these accounts have been deleted or paid in full.

4. How do I know if I paid on debt directly owed to ITT, and if I will be getting money back?

ITT issued Temporary Credits to students to pay tuition not covered by federal and private student loans. Many Temporary Credits were later replaced by private loans, including Student CU Connect CUSO and PEAKS loans—these debts are no longer considered Temporary Credits and are not included in the nearly $600 million that is being cancelled. Collection of the Temporary Credits, on behalf of ITT, were serviced by UAS, FirstSource, Security Credit Systems, Inc., Premiere Credit NA, General Revenue Corporation and other agencies. If you made payments to any of these collection agencies since September 2016 on ITT-related debt, you are entitled to receive money back, minus any administrative fees.

5. When will I get my money back?

Now that the proposed settlement was preliminarily approved by the court, the trustee will begin working on getting the money back to students. We will push the trustee to do this as soon as possible, and will share additional updates when we know more.

6. How will this settlement affect my credit?

This settlement will only affect your credit if you had Temporary Credits. If you had Temporary Credits, as described above, your account will either be marked as paid in full or will be deleted. There will be no further credit reporting on these accounts.

7. How much money will students actually get from the $1.5 billion allowed proof of claim?

At the moment, we don’t know. The settlement, if approved, would grant the student class, an unsecured creditor, the right to a $1.5 billion claim.

In a bankruptcy, the trustee has to determine and maximize the amount of money available to distribute to the creditors of the bankrupt company. Creditors are people who are owed money by the company. The creditors must file a proof of claim by the court-set deadline to tell the trustee what they believe they are owed. Once the trustee reviews all proofs of claim, she decides whether to “allow” or object to a creditor’s claim.

Along with other unsecured creditors, the student class must wait to see if and how much money will be left in the bankruptcy “pot” to distribute to the student class. If, at the end of the bankruptcy there is money in the estate to pay unsecured creditors, the student class will receive a proportional share based on the size of the allowed claim. This will likely be cents on the dollar. Any amount distributed to the student class will be divided fairly, and the distribution must be approved by the court.

8. Are there lawyers representing me?

The Court has approved lawyers (called “Class Counsel”), the Legal Services Center of Harvard Law School and Jenner & Block, to collectively represent all Settlement Class Members. You will not be asked to pay for the services of these attorneys. However, that does not prevent you from hiring your own lawyer to advise you personally about your rights, options or obligations as a Settlement Class Member in this lawsuit.

9. What happens if I do nothing?

If you do nothing, you will be part of the Settlement Class, and you will be releasing all claims you may have against the Debtors related to the allegations in the case. You will not be releasing claims against third parties, including the Department of Education and private loan lenders.

10. What if I don’t want to be part of the settlement?

You may request to be excluded from the settlement, called “opting out.” If you opt out, you will not be part of the Settlement Class, will not receive any payout on the Proof of Claim, if a payout occurs, and your claims will not be released. You will then be entitled to pursue your claims against the estate on your own.

You may opt out of the settlement by returning a copy of the form to the court at the address below, showing your intention to opt out of the Settlement Class, so that it is received on or before May 10, 2018 (the “Opt-Out Deadline”).

In re ITT Educational Services, Inc., et al.

116 U.S. Courthouse 46 East Ohio Street

Indianapolis, IN 46204

11. What if I did not file a proof of claim before January 30, 2017?

You may still file a proof of claim, but bear in mind that the court may consider it as having been filed late.

12.  What if I did not file a proof of claim, but I want to opt out?

If you did not file a proof of claim, you may still opt out.

13. What if I object to the settlement?

Any Settlement Class Member may object to the settlement, or to any settlement term. Settlement Class Members must object in writing. You must file any objection by April 24, 2018. Objecting to the settlement does not mean that you are opting out, you are only sharing your objection with the court.

If you object to any part of the settlement agreement and you want to tell the Judge, you must write a letter to the Judge telling him what you do not like about the Settlement Agreement. Include your name, address, phone number, and signature in the letter.

Objections should be mailed to:

In re ITT Educational Services, Inc., et al.

116 U.S. Courthouse 46 East Ohio Street

Indianapolis, IN 46204

14. Can I comment on the settlement without opting out?

Yes, you may comment on the settlement by sending your comments to the court at the address above or by emailing us at ppsl@law.harvard.edu, with subject line “Comment on ITT Settlement.” We will mail your comments to the court for you.

15. When will the settlement become final?

After the objection and opt out deadline have passed, the court will consider the objections and comments that were submitted. If, after considering the objections and comments and opt-outs, the settlement process moves forward, then the student class and

the trustee will seek final approval from the court. The hearing for final approval is currently scheduled for June 13, 2018.