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 will those who paid off by Frankie j
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 I also attended UoP online. by Awanaangel
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 what if you took out a by emad
No, the settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
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 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 what if you took out a by emad
The settlement between the FTC and the University of Phoenix does not affect your private loans or federal government loans.
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 am jobless still. What’s by vxm
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 enrolled at the uop in by Cdear91
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 between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
In reply to If I read this correctly, if by In Debt for Life
In reply to I am seeing that under the by R.Lightner
Under the settlement unanimously approved by the Commission, UOP will pay $50 million in cash as well as cancel $141 million in debts owed to the school by students who were harmed by the deceptive ads.
The FTC will use $50 million for payments to students. When we have information about how the FTC will manage the payments we'll publish it on www.consumer.ftc.gov.
In reply to I have been seeing ads about by Aria79
Yes! If your debt is cancelled, the University will contact you. No one can get the letter for you, even if you pay them.
Thank you for alerting people about the ad you saw - it sounds like a scam.
The University is cancelling debts that people owe directly to the school. Generally, when businesses need to reach people, they use their own records or use the Postal Service Mail Forwarding service to locate them.
In reply to I have been seeing ads about by Aria79
In reply to I attended University of by zaxhere247
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 between October 1, 2012 and December 31, 2016.
The University is not giving refunds. It is cancelling debts that people owe to the University, if those people enrolled for the first time between October 1, 2012 and December 31, 2016.
In reply to I went to umiversity of by Ddelmoral
The University is not giving refunds. Under this settlement with the FTC, it is cancelling debts that people owe to the University, if those people enrolled for the first time between October 1, 2012 and December 31, 2016.
In reply to What if we attended before by Frustrated
The University is not giving refunds. Under this settlement with the FTC, it is cancelling debts that people owe to the University, if those people enrolled for the first time between October 1, 2012 and December 31, 2016.
In reply to I went to university of by Ling ling
The University is not giving refunds. Under this settlement with the FTC, it is cancelling debts that people owe to the University, if those people enrolled for the first time between October 1, 2012 and December 31, 2016.
In reply to I enrolled durin 2016 and I by ryanfisch
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 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 between the FTC and the University of Phoenix does not affect students' private loans or federal government loans.
In reply to Under the settlement between by FTC Staff
In reply to I enrolled in Uni. Phoenix in by Danielle R.
The University is not offering refunds on degrees as part of the settlement with the FTC.
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 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.