ITT Educational trustee OK’d to suspend student receivables collection

By Caroline Salls

Pittsburgh, May 18 – ITT Educational Services, Inc.’s Chapter 7 trustee obtained court approval to suspend collection of student receivables, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Indiana.

Trustee Deborah J. Caruso said she “has determined it would be in the estates’ best interests to discontinue collection of the student receivables, to provide notice thereof to the debtors’ former students, and to calculate a pro rata refund that ultimately may be remitted to each student from the segregated account for student receivables.”

By discontinuing collection of student receivables, Caruso said ITT will no longer incur any associated fees or expenses in connection with those receivables, including those currently owed to and being charged by collection agencies, such as University Accounting Services, LLC and FirstSource Financial Solutions, Inc.

In addition, Caruso received court approval to pay former ITT employee Mark Huber $200 per hour to help her with posting receipts received from collected receivables to their respective student accounts to credit amounts paid and calculating the refunds that ultimately may be remitted to the students.

ITT Educational Services provided postsecondary degree programs and is based in Carmel, Ind. The company filed for bankruptcy on Sept. 16, 2016 under Chapter 7 case number 16-07207.

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