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FTC settlement against University of Phoenix

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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. 

FTC settlement with University of Phoenix

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.

Blog Topics: 
Jobs & Making Money

Comments

I was enrolled from 2011 to 2013 and had to take out separate loans from Sallie Mae to cover the cost of their tuition increases during this time. While my loans to Sallie Mae have been paid off, would I be able to get any compensation back for having to take out those loans, or does this only cover outstanding loans? I currently have a little over $62,000 in loans.

I went to the school from 2010 to 2013. Will I get part of the loan forgiven from 2012 to 2013?

How does that help the students that took out loans to pay. Many of us will not have balanced with University but have student loans for that time period.

Also one of the students who started the process in late 2016 but wasn’t actually staring classes until February 2017
I want my debt wiped as well unfair I’ll be looking into how to get that time frame extended based on how their semesters run
FTC this should be taken into consideration as well.
The school is subpar in general and needs to be dismantled in general.

I went to school from 2011-2014. I completed my Bachelors and Masters through the GI Bill. Will VA receive their money back ? Also, I didn't pay for the last class in my MBA because of all of the "hopes and dreams" that they sold me on. I still don't have the career they guaranteed coming out of that school. Now I am doing something completely different. I wish I wouldn't have wasted my GI bill on this school. I hope that I'm included in the debt being eliminated.

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.

Great question. Lets get reimbursed to go to a real school. I wasted my time and GI Bill, when transitioning from the military is difficult as it is. We only have one opportunity to live that, and UOP took that away from us.

The information stated, "This settlement will not affect student borrowers’ federal or private loan obligations." I'm upset because I was enrolled from Sept 2012 to October 2016 however I will not receive any debt relief because I went through the Department of Education for Financial Aid (Nelnet in which my loans were transferred to Fedloan). I received the same information other students who paid UOP directly however I have to continue to pay to the Department of Education because I did not pay UOP directly, am I understanding this correctly? I received my Masters from the UOP and I am still trying to pursue my dream job and salary. Basically I am barely making it however I do pay my loan payments.

When I was signed up the school was of course University of Phoenix but everything referenced AXIA college. Would this be forgiven as well, if it meets the criteria?

Axia College of University of Phoenix was the online 2-year degree branch of the University of Phoenix.

Good and bad news. Glad people are getting the assistance.. bad because I started at UoP in 2008, graduated in 2012 and the whole time was given similar infor.ation. About all the companies that hire their grads and the pay rates. Only to realize after graduating that many companies did NOT recognize UoP as an accredited college and did not accept the degree I received from them. I work for IBM now but only after a friend referred me to his manager and they didnt care about the degree... Wish there was more digging. They also gave false numbers on the cost of the degree so here I am 80000 + in debt ..

I enrolled in 2015 and will graduate in 2020. I received federal student loans and also paid about 1200 out of pocket. Will the federal student loans be given or paid for by UOP under this settlement?

The settlement between the FTC and University of Phoenix doesn't affect your private or federal student loans.

SO if the settlement doesn't affect student loans, you are saying the loans wont be forgiven or paid back by UOP? well practically everyone received student loans, so how is this fair?

Who does a person contact about all the different law suits? Doing a quick search I see others that were mislead with price and employer information prior to 2012?

I enrolled in 2013 to 2017 it was those ads that made me to get financial aid and student loans to attend thinking it was my best chance of getting hired by those partner companies advertised. I took student loans because of these ads during that time period. Are we part of this settlement?

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.

I attended the University of Phoenix 03/25/2013. I would like to have a better understanding about how this works. Clearly I cannot afford to owe the school any money, but at the time was referred by the school to acquire a student loan. Now the loan is owed to another company in which I was loaned the money to attend the school. I understand that the settlement does not involve "private or federal loans" but the only reason I signed up for the loan was because of the "opportunities" that they claimed I would be in position to receive once I graduated. So because I was misled by the school to acquire a student loan for their program, my debt is not forgiven?

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.

if you took out a federal loan because that is all they offered during this timeframe, this loan is not forgiven? Shouldn’t they be responsible for this loan too?

The settlement between the FTC and the University of Phoenix does not affect your 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 University will send a notice to each person whose debt to the school is being cancelled.

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.

The time frame refers to the first time a student enrolled in the college - not the first date of classes. My first class was in 08 through UoP - Axia. UoP took over their online classes in 2012, making my "first enrollment" date March 2012. I'd advise anyone who took a break from from 08 to 16 to call and see if your enrollment date changed due to change of ownership. You can also call UoP Financial Aid and they will let you know if you qualify. I hope this is a start to other loan/debt forgiveness opportunities from this school. Good luck!

Axia College of University of Phoenix was the online two-year degree branch of the University of Phoenix.  If you first enrolled at Axia College of the University of Phoenix in 2008, that is like you first enrolled at University of Phoenix in 2008.

I enrolled in 2012. Do you know if there is a way around the enrollment date?

I attended UOP during that time frame. Will my outstanding student loan debt be covered under this settlement? What about the resulting interest? Will UoP obtain my contact information via my student loan company?

The settlement between the FTC and the University of Phoenix does not affect your private loans or federal government loans.

Do you owe money directly to the school?

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 send a notice to each person whose debt to the school is being cancelled.

I was sent to a collection agency for class I took during this time and paid the balance. Will these types of debts be included as there were a result from UOP?

Do you owe money directly to the University?

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.

Do you know if this covers re-enrollment? I was initially a student in 2010 for 3 classes and decided it wasn’t for me. Re-enrolled in 2013 for my Bachelors degree which a finished in 2015.

I see that under the settlement it indicates that the settlement will not affect student borrowers’ federal or private loan obligations. If I have a loan with the Department of Education to pay UOP, would I be considered under the settlement debt cancellation or will I not be considered since I have a federal loan?

Under the settlement between the FTC and the University of Phoenix, the University will cancel $141 million in debt that people who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the school.

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.

I'm so glad the FTC has helped with this. I joined the University of Phoenix in January 2015, hoping to get on a new career path. It didn't take long for me to realize what a joke this "school" was. I ended up dropping out 9 months later with nearly $10,000 in debt and a ton of regret! According to what I've read, this settlement should apply to me. Hoping to hear something from UoP soon. For those who have not read the entire article, they will be reaching out within 2 weeks (via email and USPS mail). They have roughly 2 months to remove the debt from your credit report. From my understanding your debt will be forgiven, but you will not be refunded what you already paid (although I could be wrong.) Again, this only applies for those who were enrolled 10/2012-12/2016.

Under the settlement, the University will cancel debt that people owe directly to the University for fees and other kinds of charges, if the people first enrolled 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.

Most of the deception around UoP was getting students to apply for federal aid so UoP could get them to go to school there at any cost. Why are people that took out federal loans not a part of this? Those federal loans paid UoP directly for tuition. UoP gives out degrees that are not taken seriously by most employers.

I agree 100%.

I went to school at UOP in this time frame. I have not received anything from the school regarding Debt forgiveness . I wonder who or what student have received this information . Will the people who won the settlement agreement go back to ensure this is paid out ??

I attended UOP 2014 and graduated in 2016. I have not found a job in my filed and my degree is useless. I have student loan debt, does this settlement include "student loan debt" because if not this also is a useless settlement. What about the students who had to take out loans during that time period to attend this school?

I was attendance at the University of Phoenix during the years of 2018 and 2019 are these refines a Applicable to my attendance timeframe

What about money that was paid from the job tuition reimbursement? Will that money be sent back to the employer or a check to the employee? I was given $2000 a year for school and my employer paid this based on my eligibility. How does this work?

The University isn't sending money back to people.

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 will send a notice to each person whose debt to the school is being cancelled.

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.

What if i was enrolled at that time, but received federal student loans, will i be reimbursed.... or am i stuck paying since i dind't directly play the school?

I first enrolled 8/7/2012 and graduated 06/2016. Does this mean that I will not be covered under this? I'm not sure where the 10/01/2012 date came from, but I was also misinformed by them in regards to promises of career advancement... Or will I be covered for my debts incurred from 10/1/2012 - 2016?

In the document it states, that the settlement does not apply to loans. Please explain how this will this affect or help the student that were misled to attend this university, took out large amount of loans to pay for tuition, charged unknown fees and everything else but still have a so call degree that really is worthless in the real world. This school should pay it all back (balances and loans) for the people that were misled... Better yet their doors should be closed for good. Its very disturbing and sad that people can’t get a quality education without being scammed, railroaded and left with so much debt.

What if I enrolled in 2008 for my bachelors and then enrolled again for my masters after (2012). Do I qualify or is it based on initial enrollment?

To be eligible for cancellation of debts you owed directly to the University, you must have enrolled for the first time between October 1, 2012 and December 31, 2016.

I went to U - Phoenix while utilzing the 9-11 GI Bell. There is a negative on my credit report while they were being paid by the VA. Just wondering how I could about getting this off my credit report. Yes I have already reported to the credit bureaus. Thanks

So if we have loans that we applied through the school will those be cancelled? Example mine are paid to Navient....do I keep paying them until I receive something and will these be erased?

No, the settlement between the FTC and the University of Phoenix does not affect students' private loans or federal government loans. The settlement is not cancelling 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.

I attended University of Phoenix online in 2015. I took out a loan and have since moved to another state. How do I go about finding out if I will be included in the refund and forgiveness process?

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 debt that people who first enrolled between October 1, 2012 and December 31, 2016 owe directly to the school.

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.

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