Bunch of people noticing today that their PEAKS loans are being marked as paid or 0 balance this morning. Could be another sign that they are going bankrupt.
9 replies (most recent on top)
"it does in my world, chum."
That would be a rather simple word. If the debt is sold on / transferred etc. the debt may still exist in another account somewhere.
These appear to be private loans, established through a program created by KM. (see / ). So since DOE is apparently not a participant, the likely answer is no.
Is fedloan servicing and student connect cu loans are being forgiven too
just because your account references a zero balance doesn't mean that you do not have a debt.
it does in my world, chum.
I'm guessing First Associates Loan Servicing, the loan servicer, has parted ways with ITT Tech (who would want to be associated with KM now), and the $0 balance reflects that distancing as they do not want to be involved until some sort of loan servicing agreement is in place. So just because your account references a zero balance doesn't mean that you do not have a debt.
Any signs that these loans are "transferred"?
Creditors should demand a quick conversion from Debtor-in-Possession (Chapter 11) to Chapter 7. No sense in waiting while allowing "C" level employees to collect high salaries and enjoy (the benefits associated with employment, thus depleting the remaining assets. This is a commonly used ploy to lessen the potential impact of uncovering fraud by a third party bankruptcy trustee. If assets get gobbled up Chapter 11 administrative expenses, there is little left to pay Chapter 7 administrative expenses once an independent trustee is appointed. A sort of keeping the fox in the hen house approach to "business as usual."
So the plot thickens. Didn't realize that KM scammed Wall Street too relative to packaging ITT student debt and selling it to investors. See:
KM a brilliant strategy that should get you free room and board at Club Fed.
Enjoy your life.
I think what they may be doing is trying to look as bad or as in debt as possible for the bankruptcy filing. Common general business practice. If you have to look bad, look really bad. PEAKS was accounts receivable. Along with new students that don't need financial aid. By close ALL enrollment, killing PEAKS, they are killing all income sources one by one.
Possibly a parting gift from some disgruntled employee in their finance department!