Facing Millions In Court Settlement, Star Career Academy Abruptly Shuts Down

BRICK, NJ — Danielle Figner says she was just months away from completing her classes at Star Career Academy. But instead of a certification, all she's left with is a text message.

"Star Career Academy informs students all classes are canceled and effective immediately the school is closing," the text message reads.

"We worked hard toward our dreams of becoming something, we got robbed of all of that," Figner, who works as a home health aide, said. "Two months until my class finished and would have begun extern (an external internship placement) and we get no explanation, no guidance. Just a text message. Unreal."

The academy, which has campuses in Brick, Clifton, Egg Harbor and Newark, in Philadelphia and in New York City, also operates the Culinary Academy of Long Island in Syosset, N.Y., and ServFast Computers in Toms River.

The closure "is the result of the negative financial impact of a continued declining student population while operating in the challenging for-profit post-secondary school industry," the company said in a news release on its website. "Star Career Academy has done everything in its power to prevent closure after operating for 37 years and providing a supportive educational environment for thousands of students."

A year ago, the company was ordered to pay a $9.2 million judgment in a class action lawsuit for defrauding students in its surgical technology program; Star Career Academy was accused of misrepresenting the program's accreditations, according to attorneys representing the defendants.

The academy allegedly did not tell its students that most hospitals and other credentialing organizations no longer recognized Star’s surgical technology program, or others like it. The suit further alleged that students were specifically misled on this point.

The academy was faced with an additional action earlier this year, according to the National Trial Lawyers website. That site reported the plantiffs in the class action lawsuit sought to force Star Career Academy to turn over an additional $5.5 million it received from the federal government in the form of education grants — plus $500,000 in interest on the grant money. That motion was filed in January, according to the National Trial Lawyers site.

The academy's news release made no mention of either court action, and a call to the media contact on the news release has not yet been returned.

The news release said students had been notified not to report to their campuses via text messages and emails, but in Brick, students arrived Tuesday morning at the Brick Boulevard site only to find the doors closed and locked, completely caught off-guard by the closure. The release said employees were notified in person or by phone.

"All that lost time and money," Figner said. "So close to finishing and now we are left with nothing."

How many employees and students are affected is not immediately known. Scott Westcott of the media relations firm Casteel and Schoenborn, who is handling media inquires about the closure, responded to a phone message with an email saying all information is on the Star Career Academy website. He did not respond to a follow-up question asking how many employees and students are affected by the closure.

Students posted on the company's Facebook page about the closing, expressing anger and frustration:

Star Career Academy said information about obtaining transcripts is available on its website, www.starcareer.edu, and also said those students with student loans taken out for courses at Star Career Academy may be eligible to have those loans discharged.

"For students worried about loans, we will be performing the required Return to Title IV refund calculations over the next 30 days. Once that process is completed, you can begin your application for student loan discharge," the notice said.

"Star Career Academy hopes that you will be able to continue pursuing your educational goals at another institution. However, if you are unable or choose not to do so, you could be eligible for a discharge of your federal student loan. Additional information and application forms are available from the U.S. Department of Education by clicking here."

"Students with only externship hours to complete will be contacted directly by Star Career Academy by the end of this week," the notice said.

Students outside Star Career Academy in Brick on Tuesday. Victor Finamore photo