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 The FTC will publish details by FTC Staff
In reply to I attend 2008 graduated 2011 by anthoo
The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov.
In reply to The Federal Student Aid by FTC Staff
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University of Phoenix will send a notice to each person whose debt to the school is being cancelled.
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In reply to Hello may you please help me by RSHORT
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.
Also, 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 University of Phoenix will by FTC Staff
In reply to University of Phoenix will by FTC Staff
In reply to I attend 2008 graduated 2011 by anthoo
In reply to The FTC will publish details by FTC Staff
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The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov.
In reply to Under the settlement, the by FTC Staff
In reply to Under the settlement, the by FTC Staff
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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.
In reply to Do you owe money directly to by FTC Staff
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In reply to Hi, I’m a graduated student by ashley
The settlement between the FTC and the University of Phoenix does not affect loans that students have with the federal government or private lenders. To find out who your lender is, look at your account online, or look at the paperwork you signed when you took out the loan.
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.
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 The settlement between the by FTC Staff
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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.
In reply to The FTC will identify people by FTC Staff
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To get email updates about this settlement, please sign up here.
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In reply to How will students know if by R. Crawford
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. The settlement doesn't affect students' private loans or federal government loans.
University of Phoenix will send a notice to each person whose debt to the school is being cancelled. The notice will come by email or paper mail. The notice will have information about getting transcripts.
In reply to Under the settlement, the by FTC Staff
In reply to When is the time period? by Jhenry
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 happens to enrollments by rlafitte48
Under the settlement, the University of Phoenix will cancel $141 million in debts former students who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the University.
That's the time period when people were probably exposed to the University's deceptive advertising. The FTC says the University falsely claimed it had relationships and job opportunities with companies like AT&T, Yahoo!, Microsoft, Twitter, and The American Red Cross.
In reply to Under the settlement, the by FTC Staff
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In reply to This is a ridiculous by brandiawilliams
Under the settlement, the University will cancel $141 million in debts owed to the school by students who were harmed by deceptive ads and ask credit reporting agencies to delete the debt from students' credit reporting files.
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