Business ProfileforBerkeley College

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

New York,  March 22, 2022  – New York City Mayor Eric Adams today announced an agreement with Berkeley College of New York that will deliver $20 million in debt relief to former students of one of the largest for-profit colleges in New York state. The agreement stems from a 2018 lawsuit filed by the New York City Department of Consumer and Worker Protection (DCWP), which asserted that, to generate revenue, New York Berkeley engaged in aggressive recruiting tactics designed to prey on the hopes and dreams of consumers seeking improved career prospects and greater financial security..

Berkeley Educational Services of New York, Inc . expressly denies the allegations asserted by Plaintiffs in the Action and specifically disagrees that it, or any of its officers, directors, trustees, employees, agents, or representatives, have, in any way, violated the CPL or have otherwise engaged in any deceptive or unconscionable trade practice. 

The Parties determined to settle the Action on the terms set forth in this Settlement Agreement to avoid the expense and uncertainty of continued litigation.

The settlement — which has been approved by the New York County State Supreme Court —requires Berkeley to::

• Cease collection on any outstanding debt that was incurred before January 1, 2019, which, collectively, Berkeley estimates is valued at $20 million;

•   Pay $350,000 to the city, which DCWP plans to use to pay restitution to impacted consumers;

• - Produce a random sample of recorded admissions interviews to DCWP on a monthly basis for two years to review for material misstatements; and

• - Institute policies related to 1) admissions interviews and financial aid counseling for incoming and enrolled students, 2) notifying students about transfer credits and financial aid issues, 3) communicating with students about debt owed to Berkeley, and 4) making sure statutes of limitation on debt collection are observed.

DCWP will also be referring those receiving restitution to DCWP’s New York City Financial Empowerment Centers, where they can meet one-on-one with financial counselors. Berkeley College is one of the largest for-profit colleges in New York State with approximately 4,000 enrolled students. Those who were students at Berkeley prior to January 1, 2019 and have questions about the terms of this settlement or whether it applies to them should contact DCWP.