University Of Phoenix: Student Loan Forgiveness And You

The University of Phoenix has been at the center of student loan forgiveness discussions, with nearly a million former students facing a collective debt of $21.6 billion. The U.S. Department of Education has approved federal student loan forgiveness for students deceived by the university's job placement and partnership claims, provided they submit valid applications through the Borrower Defense program. The Federal Trade Commission (FTC) also obtained a record $191 million settlement from the university, addressing deceptive advertising practices used to attract students. This has resulted in refunds and potential loan forgiveness for affected students, with ongoing applications still being processed.

University of Phoenix loan forgiveness via a class-action lawsuit

The University of Phoenix has been accused of fraudulent marketing and business activities, including violating state and federal laws. A class-action lawsuit filed by former students alleged that the university engaged in unfair and deceptive marketing practices, giving the impression that it worked with large national companies to create job opportunities for its students and tailor its courses to help them land those jobs. In reality, many graduates were left with poor job prospects, little support from the university, and large amounts of student debt.

As a result of these accusations and the subsequent settlement, the University of Phoenix has agreed to provide loan forgiveness benefits to eligible former students. The settlement, reached in December 2019, includes $141 million in student loan forgiveness for borrowers who enrolled at the university between October 1, 2012, and December 31, 2016. The university has also been ordered to pay $50 million to the Federal Trade Commission (FTC) to make payments to former students.

To be eligible for loan forgiveness under this settlement, you must have enrolled at the University of Phoenix between the specified dates and have loans directly owed to the university or its assignees or transferees. If you have federal student loans owed to the government, you will need to seek loan forgiveness through the Borrower's Defense Against Repayment Program, which allows students to apply for loan forgiveness if they believe they were defrauded by their school. This program has been used by many University of Phoenix students to seek loan forgiveness, and the Department of Education has recently approved nearly $37 million in federal loan forgiveness for over 1,200 students affected by the university's deceptive practices.

It is important to note that the process for applying for loan forgiveness through the Borrower's Defense Against Repayment Program can be complex and time-consuming, and the Department of Education is currently backed up with applications. However, if your application is approved, your entire University of Phoenix loan may be forgiven, and you may even be eligible for a refund of any amounts already paid to the university or its parent company, Apollo Education Group.

University of Phoenix's settlement with the FTC

The University of Phoenix has been accused of engaging in fraudulent marketing and business activities, including violating state and federal laws. The for-profit college chain has been under scrutiny for years, with allegations that it ran a scam operation to extract money from Americans, the Federal Government, and the Defense Department through student loans given to military personnel.

In 2015, the U.S. Federal Trade Commission (FTC) issued a broad investigative demand to the university's parent company, Apollo Education Group, to examine all advertising and marketing activities and practices. The FTC accused the university of using deceptive ads about job opportunities to attract students and then failing to live up to its promises. Specifically, the FTC alleged that the university falsely claimed to work with well-known national companies to create job opportunities for its students and tailor its curriculum for such jobs. The University of Phoenix denied any wrongdoing but agreed to settle the case to avoid the distraction and expense of protracted litigation.

On December 10, 2019, the University of Phoenix announced a settlement agreement with the FTC, agreeing to pay $191 million, with $141 million to be used to forgive student loans for borrowers who enrolled between October 1, 2012, and December 31, 2016. The settlement also required the university and Apollo Education Group to notify eligible borrowers by email and letter within 15 business days, with their debt being cancelled within 45 days. The remaining $50 million was to be distributed at the sole discretion of the FTC.

The settlement provides much-needed relief to students deceived by the University of Phoenix, with the FTC's Samuel Levine stating, "Students deceived by the University of Phoenix deserve strong relief, and today's action is an important step forward." The settlement also allows affected students to apply for loan forgiveness through the Borrower's Defense Against Repayment Program, which may result in the elimination of their federal debt tied to the university.

Student loan forgiveness for borrowers who attended the University of Phoenix between October 1, 2012, and December 31, 2016

The University of Phoenix has been accused of fraudulent marketing and business activities, including violating state and federal laws. A lawsuit filed against the university alleged that it gave the false impression that it worked with large national companies to create job opportunities for its students and tailor its curriculum for such jobs. As a result, many graduates were left with poor job prospects and tons of student loans.

On December 11, 2019, the University of Phoenix and the Federal Trade Commission (FTC) reached a settlement agreement, with the university agreeing to pay $191 million in penalties, of which $141 million was used to forgive student loans for borrowers who enrolled between October 1, 2012, and December 31, 2016. The settlement terms specify that only loans directly owed to the University of Phoenix or its assignees or transferees are eligible for forgiveness under the agreement.

Borrowers who have federal student loans owed to the government can seek loan forgiveness through the Borrower Defense to Repayment program, which allows borrowers to file claims if they believe they were defrauded by the school they attended. This program has been mired in legal battles, with a backlog of applications at the Department of Education.

In September 2023, President Joe Biden's Education Department and the FTC announced that 1,200 borrowers who attended the University of Phoenix between September 21, 2012, and December 31, 2014, and submitted claims, would receive $37 million in debt relief through the Borrower Defense to Repayment program. These borrowers were deceived by the university's false advertising and were left with useless degrees and mounds of debt.

If you attended the University of Phoenix during the specified period and believe you were deceived by the school's claims, you may be eligible for loan forgiveness. You can submit a Borrower Defense claim or application on the Federal Student Aid website. If approved, your entire University of Phoenix loan may be forgiven, and you may even qualify for a refund of any amounts already paid.

The University of Phoenix's alleged false advertising and deceptive practices

The University of Phoenix has been at the centre of several lawsuits and settlement agreements regarding its advertising and business practices. The for-profit college has been accused of unfair, false, and deceptive marketing practices, misleading students about their post-graduation job opportunities.

The University of Phoenix's advertising campaigns allegedly featured logos from high-profile employers, including AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross. The Federal Trade Commission (FTC) accused the university of giving students the false impression that it worked with these well-known national companies to create job opportunities and tailor its curriculum for such jobs. The FTC investigation, opened in 2015, found that the university did not have any special partnerships with the advertised companies. In reality, many graduates were left with poor job prospects, very little support from the university, and large amounts of student loan debt.

In December 2019, the University of Phoenix agreed to a $191 million settlement with the FTC, the largest settlement obtained from a lawsuit against a for-profit university at the time. Of this, $50 million was to be paid in cash, and the remaining $141 million was to come in the form of debt cancellation for students who enrolled between 1 October 2012 and 31 December 2016, with outstanding debts owed directly to the school. The settlement also required the university to notify eligible borrowers within 15 business days, with their debt being cancelled within 45 days and credit reporting updated within 55 days.

The University of Phoenix has denied any wrongdoing and continues to believe that the school acted appropriately. However, the settlement agreement states that the university must promise never to misrepresent its professional relationships moving forward.

The Borrower's Defense Against Repayment Program

In the case of the University of Phoenix, the institution has been accused of committing fraudulent marketing and business activities, including violating state and federal laws. Specifically, the university allegedly engaged in deceptive marketing practices, giving students the false impression that it worked with well-known national companies to create job opportunities and tailor its curriculum to help students land those jobs. As a result of these accusations, the University of Phoenix reached a settlement agreement with the Federal Trade Commission (FTC) in 2019, agreeing to provide $141 million in student loan forgiveness benefits to former students with outstanding federal debt.

To qualify for loan forgiveness under the Borrower's Defense Against Repayment Program, borrowers must submit a claim to the Federal Student Aid office. The claim should outline how the borrower believes they were defrauded or misled by their school. It's important to note that the program only applies to federal student loans and that private loans or out-of-pocket costs are not eligible for forgiveness under this program. Additionally, only loans directly owed to the University of Phoenix or its assignees/transferees are eligible for forgiveness under the University of Phoenix settlement agreement.

The process of applying for loan forgiveness through the Borrower's Defense Against Repayment Program can take some time. The Department of Education has up to three years to make a decision on a submitted application, and borrowers may continue to accrue interest on their loans during this evaluation period. However, if a borrower's application is approved, they can receive a full discharge of their federal student loans related to the application, reimbursement of any amounts already paid toward the loans, and requests to remove negative credit reporting.

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