Tens of thousands of former students of the ITT Technical Institute, a for-profit chain that collapsed four years ago, will fail to repay $ 330 million in private student loans that prosecutors have called of “reckless” and deceptive, as part of a settlement agreement announced Tuesday.

The agreement, involving a federal regulator and attorneys general from 47 states, covers debts incurred under ITT’s Peaks loan program, which was often used by students who had reached their maximum federal student loans.

The program’s loans carried high interest rates and locked borrowers in debts ITT knew they would be unable to repay, according to one. complaint filed by the Consumer Financial Protection Bureau. In some cases, financial aid officers sometimes signed loan documents without the borrower’s knowledge or permission.

“Many students were pushed into Peaks loans, did not understand the terms of their Peaks loans, or did not realize at all that they had taken out loans,” the office wrote in its file with the district court. American from the Southern District of Indiana.

The settlement agreement, which requires the approval of a federal judge to be enacted, covers around 35,000 borrowers, many of whom have been left with high debts and ruined credit. The agreement requires loan owners to write off all outstanding loan balances and cease collection efforts.

Trusts set up by Deutsche Bank granted the loans, but ITT effectively controlled them. The loans have been sold to investors, but the high default rate – around 80% – and ITT’s bankruptcy means those investments have not been productive.

A spokesperson for Deutsche Bank declined to comment on the settlement.

ITT abruptly closed and filed for bankruptcy in 2016 after a government crackdown on schools that deceived students about the quality of their educational programs and the career prospects of their graduates. Hundreds of thousands of former ITT students are still grappling with degree loan debt that many have said they find virtually worthless.

The settlement announced on Tuesday mirrors the one the consumer office struck last year with the operators of another ITT loan program, Student CU Connect CUSO, to eliminate $ 168 million in private student debt.

But so far the federal government – the nation’s largest student lender – has so far refused to write off much of the debts ITT students owe it, despite the findings of ministry officials. ‘Education that ITT has engaged in “blatant” and “pervasive” fraud. Tens of thousands of federal loan borrowers who have requested relief through a government program have been turned down; even those whose applications were approved were in some cases told that none of their debts would be eliminated.