The FTC Sued Career Step for False Promises Regarding Job Placement Rates and Career Outcomes, Yet Students May Still Face Uncompensated Damages

Introduction: The FTC Acted But It Likely Did Not Make All Students Whole

The Federal Trade Commission (FTC) brought an enforcement action against Career Step and secured a $43.5 million settlement. That settlement included partial refunds and student debt cancellation.

At first glance, that sounds like justice was served.

But for many current and former students, the reality may look very different.

The FTC settlement likely did not fully compensate students for the total financial harm they experienced. Instead, many may still be left absorbing thousands of dollars in losses– that go far beyond the modest refunds or limited debt forgiveness provided through the FTC action.

What the FTC Found And Why It Matters Financially

The FTC alleged that Career Step misled students about:

• Job placement rates
  
• Employer partnerships
  
• Externship opportunities
  
• Student satisfaction reviews

These representations allegedly encouraged students to enroll and pay substantial tuition.

Why does that matter now?

Because when employment outcomes do not match the promises that motivated enrollment, the financial consequences can be severe. Students make enrollment decisions based on expected job placement and income potential. When those expectations are built on misleading claims, the economic harm extends well beyond tuition.

The FTC addressed Career Step’s deceptive conduct.

But its settlement likely did not reimburse the full financial impact imposed on each former and current student that relied on the school’s misrepresentations in deciding to enroll at Career Step.

The $43.5 Million Settlement: Broad Relief, Limited Individual Recovery

As part of the FTC settlement, Career Step agreed to pay:

• Approximately $15.7 million in cash refunds
  
• Approximately $27.8 million in debt cancellation

When divided among thousands of affected current and former Career Step students, the per-student recovery was modest, often representing only a fraction of what many students paid or lost.

For example:

• A student who paid $8,000 may have received only partial relief.
  
• A student who financed tuition may still have paid interest that was not reimbursed.
  
• A student who lost months of income while pursuing the program received no wage compensation.

The FTC settlement imposed financial penalties on Career Step for its deceptive conduct and provided broad consumer relief.

However, it likely did not reimburse every dollar of individual damage sustained by many current and former students.

And that is precisely why many students are still carrying thousands in uncompensated losses.

The True Financial Harm: What the FTC Settlement Did Not Cover

Tuition refunds and debt forgiveness only tell part of the story.

Many students experienced additional losses, including:

• Unreimbursed tuition payments
  
• Financing and interest costs
  
• Associated costs of attendance
  
• Additional out-of-pocket expenses
  

The financial losses suffered by current and former Career Step students are not hypothetical. They represent real financial consequences that likely exceed the amount refunded under the FTC settlement.

The result: students remain financially exposed.

Why This Case Is Being Brought After the FTC Action

A common question is:

“Didn’t the FTC already handle this?”

The answer is yes, but only partially.

FTC settlements are structured to resolve regulatory violations and provide general relief. They do not necessarily ensure that every affected consumer is fully reimbursed for their total losses.

This case exists because:

• Many students received only modest refunds
  
• Debt cancellation did not erase all financial harm
  
• Lost income and opportunity costs were not compensated
  
• Individual damages were not calculated on a case-by-case basis

In short, current and former Career Step students are likely still absorbing substantial financial losses because they relied on the school’s misrepresentations in deciding to enroll in its programs. 

The purpose of this legal action is to pursue recovery for those remaining damages.

Inflated Job Placement Claims and the Economic Consequences

The FTC investigation found that Career Step advertised job placement rates exceeding 80%.

For many students, that statistic created a strong expectation of employment success.

Employment expectations influence financial decisions:

• Leaving existing jobs
  
• Taking on debt
  
• Investing time and savings
  

If those employment rates were overstated or calculated in a misleading way, students may have made financial commitments based on inaccurate assumptions.

When employment outcomes fall short stated representations, the consequences are not just disappointing, they are expensive.

The FTC addressed the advertising issue.

But the financial ripple effect likely remains uncompensated for many current and former students.

Employer Partnerships and Externships: The Cost of Broken Expectations

The FTC investigation found that Career Step promoted employer partnerships and externship assistance in a way that promised meaningful employment advantages.

For students, externships and employer relationships are not marketing tools — they are career-building opportunities.

When externships do not materialize:

• Certification timelines may be extended
  
• Employment may be delayed
  
• Additional costs may be incurred

Each delay represents lost income.

Each additional cost increases financial strain.

The Financial Impact on Military Families

The FTC investigation found that Career Step marketed heavily to servicemembers and military spouses.

Military families often seek portable careers due to frequent relocations.

If educational decisions were based on misleading employment representations, the consequences may have included:

• Use of limited savings
  
• Reliance on military education benefits
  
• Delayed workforce entry
  
• Increased financial stress

While the FTC addressed Career Step’s marketing misconduct, it may not have reimbursed every dollar of financial harm experienced by military families.

The uncompensated damages for many are likely still substantial.

Current and Former Career Step Students Likely Still Carry  Thousands of Dollars in Uncompensated Damages

The central issue is not whether the FTC acted.

It did.

The central issue is that many students remain financially burdened even after the settlement.

If you paid thousands in tuition, incurred financing charges, experienced delayed employment, or suffered opportunity costs and received only modest relief, you may still be absorbing significant financial losses because of Career Step’s fraudulent promises about job placement rates and  career outcomes.

That financial gap is not theoretical.

It is measurable.

And it is the reason this case is being pursued.

You May Be Entitled to Recover Your Remaining Damages

The FTC settlement does not automatically eliminate your right to pursue individual compensation.

If your total losses exceed what you received through FTC  refunds or debt cancellation, you may still have a claim.

Sanders Law Group is investigating whether current and former Career Step students may recover:

• Unreimbursed tuition payments
  
• Financing and interest costs
  
• Associated costs of attendance
  
• Additional out-of-pocket expenses

Our focus is on achieving full justice for current and former Career Step students: recovering the full uncompensated damages that many are still forced to absorb because they trusted Career Step and were misled by its false promises regarding job placement rates and career outcomes.

If you believe your financial losses exceeded the relief provided by the FTC settlement, you may have options.

Contact Sanders Law Group for a confidential evaluation.

You should not be left carrying the financial burden of promises that were never fulfilled.