ITT Educational to Pay Sallie Mae $46-Million to Settle Loan Dispute

ITT Educational Services Inc. will pay $46-million to Sallie Mae to settle a lawsuit related to a risk-sharing agreement on loans to ITT students, the news agency Reuters reported. ITT, which announced the settlement in a filing with the U.S. Securities and Exchange Commission late last month, has risk-sharing and guarantee agreements with some lenders that provide private education loans to its students. Sallie Mae, the nation’s largest private provider of student loans, sued ITT in 2001, accusing it of failing to pay some amounts due under an agreement between the two companies. ITT enrolls about 65,000 students online and at campuses of ITT Technical Institute and Daniel Webster College.

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