Sollers Education Settles for $4.6M: Over 60 New Jersey Residents, 400 Students Impacted

Settlement also involves a $1.2M civil penalty and bans the for-profit school from issuing Income Share Agreements (ISAs) for its programs.

Morristown, NJ – Sollers Education, under the umbrella of Sollers, Inc., has settled investigations by the New Jersey Division of Consumer Affairs and the Federal Trade Commission (FTC), offering approximately $3.4 million in student debt relief. Over 60 New Jersey residents will see their debt wiped clean as part of the settlements.

The Issue

The investigations were initiated due to consumer complaints alleging that Sollers falsely promised employment opportunities upon completion of costly IT training programs. According to the complaints, prospective students were lured in by online job postings and later told they needed to enroll in a $15,000 IT training program financed through an ISA to secure the job. Many complainants stated that no jobs materialized after they completed the training.

Terms of the Settlement

The New Jersey settlement, inclusive of Sollers' founder and president Siba Padhi, levies a $1.2 million civil penalty against the educational institution. It also permanently prohibits both the school and Padhi from issuing ISAs to students for any of their programs and from collecting any debt related to these ISAs.

Within 10 days, Sollers and Padhi must instruct debt collection agencies to cease collection activities and inform credit reporting agencies to remove this debt from students’ credit profiles. Any payments received post-settlement will be returned to students within the same 10-day timeframe.

Statements from Authorities

“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,” stated Attorney General Platkin.

Cari Fais, Acting Director of the Division of Consumer Affairs, added, “This settlement holds Sollers and Siba Padhi responsible for the financial harm they caused students and requires them to make changes to their business practices to ensure this doesn’t happen again.”

Background

The Division began scrutinizing Sollers in late 2020, working with the FTC. Investigators discovered multiple violations, including false advertising related to job placement rates, misleading corporate partnerships, and violations of federal laws such as the Truth in Lending Act (TILA) and the FTC Holder Rule.

Looking Ahead

Students need not take any action to benefit from the settlement. Moving forward, Sollers must comply with a 20-year reporting agreement with the FTC to document the school's business transactions in detail.

The case serves as a stark reminder to educational institutions about the dire consequences of misleading advertising and unethical business practices. For New Jersey residents, it marks an important victory against deceptive for-profit education schemes.