In a settlement with the Kentucky Attorney General’s Office, Sullivan University has agreed to forgive $1.7 million in debt for 668 students who attended Spencerian College.
Spencerian finalized its merger with Sullivan and the Sullivan College of Technology and Design in June 2018.
The students affected received Career Education Fund loans from Spencerian between Jan. 1, 2007 and Dec. 31, 2011, according to the settlement. The state attorney general is mailing letters out to those impacted, but students with questions can contact Melissa Higgins at Sullivan.
“My office is pleased that Sullivan has agreed to resolve this matter by forgiving nearly $2 million in student loans and agreeing to help repair their credit and dismiss any collection lawsuits against these students,” Attorney General Andy Beshear said in a news release. “At a time when our young Kentuckians face unprecedented student debt, I am pleased we secured them real relief.”
In an emailed statement, Sullivan wrote that the settlement “provides a substantial benefit to students who received the institutional loans.”
The settlement is the result of a lawsuit filed in 2013 by former Attorney General Jack Conway, asserting that Spencerian misrepresented the success of its graduates on its website and in advertising, the release notes.
As part of the settlement, Sullivan denies any wrongdoings asserted in the lawsuit and any violation of the Kentucky Consumer Protection Act.
Other terms of the settlement:
- Sullivan and third-party collectors will stop collections on all Career Education Fund loans, including any wage garnishments. Any lawsuits related to default on a Career Education Fund loan will be dismissed.
- Within 10 days of the settlement’s acceptance, Sullivan must instruct credit-reporting agencies to remove negative information about students related to the loans.
- The university will make a free transcript available to any student with a Career Education Fund loan for a period of three years from the date of the settlement. Requests can be made at www.sullivan.edu/spenceriantranscript.