When you hear about student loans and bankruptcy, it’s usually the student who is filing for bankruptcy protection. Not so in the case of ITT Education Services.
This time it was the for-profit school filing for bankruptcy, and its students were left to deal with the economic consequences. Looking into the ITT case brings up several key issues concerning bankruptcy, such as managing with student loans, determining creditors, and establishing assets. An article by The Washington Post explained the students’ struggle to become creditors in the company’s bankruptcy, and in this post we look into some of the details of this unique case.