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A group of former ITT Technical Institute students reached an approved settlement Wednesday that would allow them to participate in bankruptcy proceedings with the institution's parent company.

The agreement allows the students to claim $1.5 billion and cancel nearly $600 million in debts for students who attended ITT between 2006 and 2016. It would also return the $3 million students paid directly to ITT after the company declared bankruptcy.

The students filed a lawsuit in the Southern District of Indiana last year to be named as creditors in ITT's bankruptcy proceedings. The lawsuit alleged that ITT engaged in deceptive practices, violated consumer protection laws and enrolled unqualified students to generate revenue from federal and private student loans.