The Federal Trade Commission (FTC) revealed that since 2018, Sollers College has been misleading students by falsely promoting high job placement rates and claiming partnerships with renowned companies like Pfizer, Weill Cornell Medicine, and Infosys.
Sollers College, a New Jersey-based for-profit institution, is taking significant steps to rectify deceptive practices. In response to a government lawsuit, the college has committed to relieving $3.4 million in student loans
The FTC, along with the state, filed a complaint against the Sollers College in the U.S. District Court of New Jersey. Additionally, the institution will pay a $1.2 million civil penalty to the state to address consumer complaints. New Jersey’s Attorney General, Matthew Platkin, emphasized the state’s dedication to preventing for-profit schools from misleading students and pushing them into detrimental financial schemes.
This development comes in the wake of the recent resumption of student loan repayments after a three-year hiatus. According to the FTC’s complaint, Sollers College exaggerated its post-graduate employment rates on its website and advertising, claiming a 90% placement rate within three months of graduation when the actual figure is much lower, particularly in the life sciences department.
The Sollers College had also been employing deceptive income share agreements, obliging students to commit a percentage of their future earnings toward tuition costs
Consequently, students with such agreements received a letter acknowledging the FTC’s allegations. This letter assured students that no further action or payment was necessary and that the college would promptly address credit report deletions related to the debt.
It’s worth noting that this settlement does not encompass other federal or private loans extended by Sollers. The college has not yet provided a response to inquiries from Kiplinger. This action against Sollers College is part of a broader scrutiny of for-profit colleges under the Biden administration, which recently mandated the University of Phoenix to absolve $37 million in student loan debt, following an investigation revealing misrepresentation of job prospects to students.
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