AG Zoeller sues bogus college prep company, the College Network

INDIANAPOLIS – Indiana Attorney General Greg Zoeller filed a complaint in Marion County court against the College Network, an Indianapolis-based college test preparation company, for falsely claiming it offers educational programs that will lead to college degrees or transferable credits at accredited universities.

The Indiana Attorney General’s Office has received 492 written complaints since 2011 from consumers who paid thousands of dollars for allegedly bogus educational programs offered by the College Network. In its complaint, Zoeller seeks full restitution for customers of the College Network.

“The College Network has taken advantage of honest people looking to better themselves and obtain a college degree,” Zoeller said. “This deceit is unconscionable, and has left hundreds of Hoosiers in debt with nothing to show for it. People should be very wary of companies like this that claim to offer short-cuts to earning a college degree.”

According to the Attorney General’s complaint, the College Network advertises study programs for end-of-course college equivalency exams that the company falsely claims will be accepted for credit by various colleges and universities that it lists as “degree partners” or “education partners,” including Indiana State University, Purdue University, George Washington University and others. Despite this representation, there is no guarantee College Network students will be admitted into these universities or awarded credits.

The College Network supplies study materials, but does not administer the equivalency exams and cannot guarantee admission into accredited universities or award transferable credits. According to the complaint, the College Network typically targets prospective non-traditional students, including those who work full-time or have other commitments that make an online or fast-track degree desirable.

According to the complaint, College Network employees falsely represent to students that they are paying for and pursing a specific degree program at a specific university. The educational programs and packages offered by the College Network and paid for by Indiana consumers range in cost from $2,000 to $10,000.

The AG’s complaint notes that most customers of the College Network cannot afford to pay for the educational programs up-front, so employees often assist them in applying for a line of credit from a third-party credit union. Unlike traditional student loans, payments for this third-party financing typically begin immediately with an interest rate of at least 12 percent.

The Indiana Attorney General’s Office accuses the College Network of violating the Indiana Deceptive Consumer Sales Act and the Credit Services Organizations Act. The lawsuit seeks cancellation of all contracts with consumers, consumer restitution, civil penalties and attorney fees.

People who were duped by the College Network can still file a complaint with the Indiana Attorney General’s Office by calling 800-382-5516 or visiting www.IndianaConsumer.com.

Zoeller reminded Hoosiers to diligently research companies that offer higher education programs before signing up or making any payments. Check with the Indiana Commission on Propriety Education to be sure an institution is accredited.

Zoeller thanked Deputy Attorney General Mark Snodgrass for his work on this case.

A copy of Indiana’s complaint is attached.