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 University is not by FTC Staff
In reply to I was a student during the by susaha59Don't …
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 I went to the University of by Financially Strained
The University is not forgiving loans under the settlement with the FTC.
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 This is a clear indication of by Patrice H.
The press release explains that University of Phoenix settled with the FTC for a record $191 million. The University will pay $50 million in cash to the FTC which will be used for consumer payments, as well as cancel $141 million in debts owed to the school by students who were harmed by the deceptive ads.
The University stopped collection of $141 million in debt owed to the University by students who enrolled between October 1, 2012 and December 31, 2016, that the University could collect or refer to a collection agency.
In reply to The press release explains by FTC Staff
In reply to I suspect the vast majority by Phil
Phil, There is a mistake in one of your comments. Under the settlement, the University is not wiping out student loans "to the tune of $141 million."
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 debts that people owe are fees and other charges that the University could collect or transfer to a collection agency.
Also, the FTC will identify people who are eligible for a payment from the $50 million the University paid to the FTC. The FTC has not yet identified those people. You don’t have to apply or submit a claim to get a payment. If you want to get email updates about the settlement, please sign up here.
In reply to I was also promised great by MOMOF3
The settlement between the FTC and the University of Phoenix does not affect your private loans or federal government loans. The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov. The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov. The site has information about different ways of repaying, how to consolidate loans, and what to do if your loans have gone into default.
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 What about those Veterans who by AirForce Vet
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 Just because the UOP is by GoingBroke
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 It says on dec 19 , 2019 by jen1959
We posted the blog on December 10, and added new information on December 19. The added information is the "update."
The update says 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 enrolled in 2014 for a by Kimk
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
In reply to Hello, by VRADesign
If you want to get email updates about this settlement, including payments, please sign up here.
That's correct, the settlement between the FTC and the University of Phoenix does not affect loans that students took from private sources or the federal government.
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 Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov. The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov.
In reply to This is very upsetting. I by TKB
The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov. The Federal Student Aid Office of the US Department of Education has information about repaying student loans at www.StudentLoans.gov. There's information about different ways of repaying, how to consolidate loans, what to do if your loans have gone into default because you haven't paid.
In reply to University of phoenix told me by Heatherh
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.
In reply to I owe money for my student by upset borrower…
No, the settlement between the FTC and the University of Phoenix does not affect your loans from private sources or the federal government.
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 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 When does the FTC "Estimate" by Ryan Grobe
Please sign up here like to get email updates from the FTC about this settlement.