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.
Topics
In reply to Under the settlement, the by FTC Staff
In reply to Please explain (directly to by Pat
Some students who enrolled for the first time between October 1, 2012 and December 31, 2016 owe money directly to the University for fees and other charges. The University will cancel $141 million that students owe the University.
Under the settlement, the University will cancel the debts of students who owe fees or other charges directly to the school, for students who enrolled for the first time between October 1, 2012 and December 31, 2016. The University will send a notice to each person whose debt to the school is being cancelled.
In reply to Under the settlement, the by FTC Staff
In reply to How am I even suppose to live by Jarrod B
There's information about repaying student loans at www.StudentLoans.gov. That's from the Federal Student Aid Office of the US Department of Education.
In reply to There's information about by FTC Staff
In reply to Under the settlement, the by FTC Staff
In reply to What are the dates for the by maggiel
In reply to How well we receive a refund by Don't use your…
The University is not giving refunds.
Under this settlement with the FTC, it is cancelling debts that people owe directly to the University, if the people enrolled for the first time between October 1, 2012 and December 31, 2016. Generally, if a business needs to find you, they will use their own records or the Postal Service Mail Forwarding records to find your current address.
In reply to I’m currently enrolled in my by Cole96marisol2
The University is not giving refunds.
Under this settlement with the FTC, it is cancelling debts that people owe directly to the University, if the people enrolled for the first time between October 1, 2012 and December 31, 2016.
In reply to I attended the University of by Cgud
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.
In reply to I used my post 9-11 benefits by S.Crawford
The FTC will identify people who are eligible for a payment from the $50 million University of Phoenix settlement with the FTC. That could include people who used military benefits. 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.
In reply to What is the time frame of by SuzyQ
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.
In reply to Under the settlement, the by FTC Staff
In reply to What does it mean owe by Shauna
No, the settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
The University paid $50 million to the FTC as part of the settlement. The FTC will identify people who are eligible for a payment from the $50 million the University paid to 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.
In reply to Under the settlement, the by FTC Staff
In reply to Under the settlement, the by FTC Staff
In reply to I was told I would receive a by dionnec9
You can report a problem you have with a business to the FTC at www.FTC.gov/Complaint.
In reply to You can report a problem you by FTC Staff
In reply to I was told I would receive a by dionnec9
In reply to I went to University of by kcooley
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. The University will cancel debts that people owe directly to the school. This settlement will not affect your federal or private loan debts. If you think you have been defrauded or deceived in connection with a federal student loan, you can apply for loan forgiveness through the Borrower Defense to Repayment procedures.
In reply to Under the settlement, the by FTC Staff
In reply to So this only applies to funds by alphafemale
In reply to I have the same question. I'm by pc
In reply to So this only applies to funds by alphafemale
Under the settlement, the University of Phoenix will cancel $141 million in debts certain former students owe directly to the school. The University will send a notice to each person whose debt to the school is being cancelled.
The University will also make a $50 million cash payment to the FTC. The FTC will use the money to make payments to students who were harmed by the advertising. We will publish more information about the FTC payments on www.consumer.ftc.gov when it's available.
In reply to Under the settlement, the by FTC Staff
In reply to Do these debts include by InquiryGuy709
Do you owe money directly to the University for fees or some other kind of charge?
Under the settlement between the FTC and the University of Phoenix, the University will cancel $141 million in debt that people who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the school. Cancelling a debt is different from getting a refund.
In reply to So this only applies to funds by alphafemale
In reply to I was wondering the same by sagnew15
In reply to Under the settlement, the by FTC Staff