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 I went to UOPH and was by JB
In reply to How will the FTC decide who by bcla
Please sign up here to get email updates from the FTC about this settlement.
In reply to Please sign up here to get by FTC Staff
In reply to I enrolled in UOP and was by Myedu
The settlement between the FTC and the University of Phoenix does not affect your private loans or federal government loans. The University is not giving people student loan credit.
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 that people owed directly to the school, whether they were charged as fees or some other kind of charge.
In reply to According to the FTC, by This does not …
No, people who have debts directly to the school are not getting "paid out."
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.
In reply to I do see where it says that by Carolyn H.
No: This settlement is not paying loans that are owed directly to the school.
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.
In reply to What if I am a student at the by Bignardo313
Please report the problems to the FTC at www.FTC.gov/Complaint. The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations.
In reply to UOP took is charging me of by gheekids
In reply to What are the years the by Jay
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 settlement does not affect loans that students got from the federal government or private lenders.
In reply to I graduated from University by Scilla98
As part of the settlement between the FTC and the University of Phoenix, the University paid $50 million to the FTC. The FTC will identify people who are eligible for a payment from the $50 million. You don’t have to apply or submit a claim to get a payment. Please sign up here like to get email updates from the FTC about the settlement.
In reply to I too saw the ads and was by lidill
The settlement between the FTC and the University of Phoenix does not affect loans you took out 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.
In reply to So UoP is cancelling student by jhullander
No, the University of Phoenix is not cancelling student loan debts owed directly to the school.
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.
In reply to I attended during this time by NikkiAsh210
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 - and will send a notice to each person whose debt to the school is being cancelled.
The University is not giving refunds.
In reply to Under the settlement between by FTC Staff
In reply to Good morning, by 2012 MBA student
The settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
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 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.