(ABC 6 News) – The Minnesota Attorney General’s Office secured a victory for students who were victims of a predatory lending practice.

The Delaware-based company Prehired provided students in an entry-level software sales training course with income-share agreements, which the AG’s office says were deceptively marketed.

Income-share agreements differ from traditional student loans, as they take a portion of the borrower’s income after they leave the training program.

Prehired promised students these loans would not create debt and wouldn’t have to be repaid until they secured a job with a yearly salary of at least $60,000.

The AG’s office says this is untrue, and Prehired hid key loan information from borrowers.

“They were telling consumers that this is not debt, and that this is not credit that you’re going to owe. In fact, you are paying a significant amount because you are ticking off this credit product, up to double the cost of the program,” said Adam Welle, an Assistant Attorney General in the Consumer Protection Section of the Attorney General’s Office.

A federal court approved the settlement Monday proposed by the AG’s office, along with the Consumer Financial Protection Bureau, and a bipartisan coalition of 10 other state attorneys general.

Minnesota borrowers will receive $79,577.08 in restitution. Refunds are expected to be paid back by fall of 2024.