Consumer Alert
FTC settlement against University of Phoenix
Most people go to college to earn a degree and get a good job. In a competitive job market, it helps to have connections. So when a college or university claims it has relationships with well-known employers, that may convince you to attend. But beware: Claims like this may be a ploy to attract new students — and your tuition dollars. In fact, the FTC says that’s just what one for-profit university did as part of an extensive advertising campaign.
In a proposed settlement announced today, the FTC says that for-profit University of Phoenix, and its parent company, Apollo Education Group, Inc., falsely claimed that their relationships with top companies created job opportunities specifically for Phoenix students and deceptively claimed they worked with these companies to develop courses.
The FTC says that University of Phoenix used a multi-media ad campaign to attract students, including ads specifically targeted to military and Hispanic consumers. The companies’ “Let’s Get to Work” campaign featured several high-profile employers, including Microsoft, Twitter, Adobe, and Yahoo!, giving the false impression that UOP worked with those companies to create job opportunities for its students.
As part of the $191 million settlement, the companies will return $50 million in cash to former students and cancel $141 million in student debt owed directly to the school. The proposed order prohibits the companies from further deceptive business practices. In addition, it requires them to ask consumer reporting agencies to delete the debts from people’s credit reports, give notice to those who got debt cancellation, and make sure people have access to their diplomas and transcripts.
Before enrolling in school, it’s important to do your homework. You can get important information about any school at the U.S. Department of Education’s College Navigator. For example, if you enter a school’s name, you can find out if it’s public or private, for-profit or non-profit, its accreditation status, and its student loan default rates.
Also, check out what are people are saying about schools you’re considering. Search online for the school’s name plus words like “review,” “complaint” or “scam.”
If you’re looking to advance your education, do your homework to be sure you know what you’re paying for. Check out Choosing a College: Questions to Ask.
Added on December 19, 2019: The FTC will identify people who are eligible for a payment from the $50 million University of Phoenix settlement with the FTC. You don’t have to apply or submit a claim to get a payment. If you would like to get email updates about this settlement, please sign up here.
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The FTC is sending payments to people who meet four eligibility criteria. One of the criteria is that the person first enrolled in a masters, bachelors, or associates degree program at The University of Phoenix between October 15, 2012 and December 31, 2016.
Go to www.FTC.gov/UoP to read more about the payments.
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This FTC blog from March 2021 explains who is eligible for a payment.
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The FTC is sending payments to students who meet four criteria. Go to www.FTC.gov/UoP to see the four criteria and more information about the payments.
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Under the settlement, the University of Phoenix will cancel $141 million in debts certain former students owe to the school. Those former students first enrolled during the time period people were probably exposed to the school's deceptive advertising.
University of Phoenix will send a notice to each person whose debt to the school is being cancelled. Read the press release for more information.
We will publish details about the FTC refund process on www.consumer.ftc.gov when it's available.
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Under the settlement, the University of Phoenix will cancel $141 million in debts of people who first enrolled during the period starting October 1, 2012 and ending December 31, 2016, during the time people were probably exposed to the school's deceptive advertising. The University will cancel debts that people owe directly to the school. The debts will be forgiven whether they were charged as fees or some other kind of charge.
University of Phoenix will send a notice to each person whose debt to the school is being cancelled.
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The settlement between the FTC and the University of Phoenix does not affect loans that students got from the federal government or private lenders.
Under the settlement, the University will cancel $141 million in debts that are owed directly to the school by people who first enrolled at the school between October 1, 2012 and December 31, 2016. The University will cancel debts owed directly to the school whether they were charged as fees or some other kind of charge.
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The FTC will identify people who are eligible for a payment from the $50 million University of Phoenix settlement with the FTC. You don’t have to apply or submit a claim to get a payment. If you would like to get email updates about this settlement, please sign up here.