A bankruptcy judge’s decision this week brought several government cases to a grinding halt.
A bankruptcy judge’s decision Wednesday to stop a slew of government lawsuits against the now-defunct for-profit college ITT Educational Services could have serious consequences for indebted ITT Tech students.
Consumer advocates say the lawsuits by the Consumer Financial Protection Bureau and other agencies against ITT, which closed its campuses in September after the Education Department barred it from enrolling new students, are crucial to potentially helping thousands of students get relief on student loans, both federal and private. The bankruptcy judge’s decision this week, however, brought those cases to a grinding halt, meaning the suits could be left entirely unresolved.
“If [the judge] doesn’t allow these cases to progress, relief would stall,” said Jennifer Wang,...