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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In reply to So the forgiveness is for by Jason
In reply to Is it truth that only by Bachelor With Debt
Under the settlement between the FTC and the University of Phoenix, the University will cancel $141 million in debts that people who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the school.
The University will cancel debts owed directly to the school whether they were charged as fees or some other kind of charge. The University will send a notice to each person whose debt to the school is being cancelled.
The settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
In reply to This would be nice if it by Jbadirondacks
Under the settlement between the FTC and the University of Phoenix, 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. The University will send a notice to each person whose debt to the school is being cancelled.
The University also 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 I enrolled for my BA in 2015, by David G.
The University will also pay $50 million to the FTC. The FTC will use the money to make payments to students. We will publish information about the payments at www.consumer.ftc.gov when it's available.
In reply to If you were enrolled between by debtforever
Under the settlement between the FTC and the University of Phoenix, the University will cancel $141 million in debts that people who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the school. The University is cancelling debts that people still owe to the school. Cancelling a debt is different from sending a refund.
The settlement between the FTC and the University of Phoenix does not affect students' federal government loans or private loans.
In reply to I went to University of by Rduskin
This settlement applies to people who attended the University between October 1, 2012 and December 31, 2016. If you attended outside those dates, the settlement does not apply to you.
In reply to I went to University of by Rduskin
In reply to I enrolled in June 2012 and by Rusty
Under the settlement between the FTC and the University of Phoenix, the University will cancel $141 million in debts that people owe directly to the school, for people who first enrolled between October 1, 2012 and December 31, 2016.
In reply to I was attending online by Mg11
No, you would not be eligible to have any debt you owe directly to the University cancelled under this settlement. The dates you atended are not within the time period October 1, 2012 - December 31, 2016.
In reply to Is it debt that is owed by Kae
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 I’m a little confused. I have by cma
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.
The University will cancel debts owed directly to the school whether they were charged as fees or some other kind of charge. The University will send a notice to each person whose debt to the school is being cancelled.
The settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
In reply to I just paid off my loan. Will by MMarq
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 Hello to the FTC Staff by devry student …
This settlement is not about DeVry.
In reply to I started UOP in Feb 2012 for by Chris S.
Did you enroll for the first time between October 1, 2012 and December 31, 2016? If you did not, you are not eligible to have any debt you owe directly to the University cancelled under this settlement.
In reply to Hi FTC, by Carlson Ramos
Do you owe money directly to the University for fees or some other kind of charge? 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.
The settlement between the FTC and the University of Phoenix does not affect your private loans or federal government loans.
In reply to Do you owe money directly to by FTC Staff