By Jamie Feldman
Published 20 October 2023
New Jersey-based Sollers College is set to cancel $3.4 million in student loans to resolve a government lawsuit charging the for-profit college with engaging in deceptive and misleading practices.
Since 2018, the school has been “falsely touting” its job-placement rates and claiming that its relationships with prominent companies would lead to jobs after students graduated, according to a statement by the Federal Trade Commission (FTC). Notable companies such as Pfizer, Weill Cornell Medicine, and Infosys were among those that Sollers claimed to have partnerships with.
The FTC filed a complaint against the school in the U.S. District Court of New Jersey, making allegations alongside the state. In a separate agreement with the office of New Jersey Attorney General Matthew Platkin, the school will also pay a $1.2 million civil penalty to the state to resolve investigations into consumer complaints.
Legal Accountability for Deceptive Practices
“New Jersey will not allow for-profit schools to deceive students with false claims and promises or subject them to unlawful financing schemes that push them into debt instead of helping them reach their career goals,” Platkin stated. “Schools that fail to comply with laws and regulations that protect students from financial abuses and fraud will be held accountable.”
This announcement follows the recent lifting of the three-year pause on student loan repayments.
According to the FTC complaint, Sollers inflated its post-graduate employment rate on its website and in advertising, claiming that “90% of our students are placed within three months of graduation.” However, the actual job placement rate in its life sciences department hovers around 52%.
Furthermore, the school reportedly “trapped” students by encouraging them to enter deceptive income share agreements—essentially a promise to use a percentage of their future income to cover tuition.
Impact on Students
As a result of the ruling, students enrolled in these agreements received a letter from Sollers College explaining the situation. The letter detailed that no further payment or action was needed, and the school would release all holds on student accounts. Students were informed they could request transcripts and certificates, and that the school would also seek to delete any related debt from their credit reports within 10 business days.
It is important to note that the settlement does not address other federal or private loans provided by Sollers.
iBestTravel tried to obtain a comment from Sollers, but they did not respond immediately.
For-profit colleges have faced increased scrutiny under the Biden administration, which has taken action against various institutions misrepresenting relationships with employers. A recent example includes the University of Phoenix’s cancellation of $37 million in student loan debt following a Department of Education investigation.
Resources for Repaying Student Loans
The government provides several resources to assist individuals in navigating their student loan repayments. To get started, it’s advisable to review the details of your loans and current balances by visiting StudentAid.gov.
