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 I got some negative reporting by waltersd
The Federal Student Aid Office of the US Department of Education has information for people who have federal student loans at www.StudentLoans.gov. There is information about different ways of repaying and what to do when loans are in default.
In reply to I fall into the eligible by Liz
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 When do you expect payouts by David31
The FTC will send email updates about this settlement. You can sign up here to get the updates.
In reply to Good afternoon. I attended by Milz
The University is not giving refunds under this settlement.
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.
In reply to The University is not giving by FTC Staff
In reply to So the FTC gets to decide by N Pittier
The Complaint for Permanent Injunction and other Equitable Relief and the Stipulated Order for Permanent Injunction and Monetary Judgement, available on the case page, provide information about the settlement.
In reply to I went to the University of by LovedByLuna
You could look at the US Department of Education information about repaying student loans at www.StudentLoans.gov. There is information about different ways of repaying, how to consolidate loans, lowering payments, loan forgiveness and other topics. You can also contact your loan servicer to see if it offers alternative repayment arrangements.
In reply to I attended in 2010. This by Toya
You have a right to dispute errors that are on your credit report. This FTC article explains how to dispute the errors, and has a sample letter you can use when you write to the credit reporting company and the business that reported.
In reply to I was enrolled at U of P by kathysemi
The FTC will identify people who are eligible for a payment from the $50 million the University paid to the FTC as part of the settlement. 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
In reply to Please can we be considered by o_lancaster
If you have loans from the federal government, you can look at information from the Federal Student Aid Office of the US Department of Education. There is information about different repayment options at www.StudentLoans.gov.
Also, 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 How can I apply to see if I by tredmond0103
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