Lana Oconnell
The University of Phoenix has been accused of using deceptive advertising to attract students, falsely claiming to work with employers such as Microsoft, Twitter, Adobe, and Yahoo to create job opportunities for its students. The Federal Trade Commission (FTC) spent years investigating these claims and, in 2019, the University of Phoenix reached a $190 million settlement with the FTC, although it did not admit any wrongdoing. The Department of Education has since approved $37 million in loan forgiveness for 1,200 former students who claimed they were misled by the university's advertising between 2012 and 2014. This has led to a broader effort by the Biden administration to relieve student loan debt, with a total of $117 billion in forgiveness approved for borrowers in various situations.
| Characteristics | Values |
|---|---|
| Loan Forgiveness Eligibility | Students who attended the University of Phoenix between September 21, 2012, and December 31, 2014, and were deceived by the school's claims may be eligible for loan forgiveness. |
| Application Process | Students must submit a valid application for relief through the Department of Education's Borrower Defense program. |
| Status Check | Applicants can check the status of their application on the Borrower Defense page under "Manage My Applications." |
| FTC Settlement | The University of Phoenix reached a $190-$191 million settlement with the FTC in 2019 to resolve deceptive advertising claims without admitting wrongdoing. |
| Loan Forgiveness Amount | The Department of Education approved $37 million in loan forgiveness for 1,200 former University of Phoenix students. |
| Broader Efforts | The Biden administration's broader effort to forgive student loan debt has resulted in $117 billion in forgiveness to certain borrowers. |
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What You'll Learn
Student loan forgiveness eligibility criteria
The US Department of Education has announced that it will consider forgiving federal student loans for students of the University of Phoenix. This decision is based on the Federal Trade Commission's (FTC) 2019 court action against the university for using deceptive advertising practices to attract students. The FTC alleged that the university falsely claimed to work with employers such as Microsoft, Twitter, Adobe, and Yahoo to create job opportunities for its students. The University of Phoenix reached a $190 million settlement with the FTC in 2019, but it did not admit any wrongdoing.
Following this, the Department of Education will approve full federal student loan forgiveness for eligible University of Phoenix students. To be eligible, individuals must have attended the school between 21 September 2012 and 31 December 2014, been deceived by the school's claims, and submitted a valid application for relief through the Borrower Defense program. The Borrower Defense program allows students to seek relief if they have been misled or defrauded by their college.
- Employment: Some programs, like the Public Service Loan Forgiveness (PSLF) program, are designed for nonprofit and government employees who work in public service for a certain period and meet specific payment requirements.
- Income: Income-Driven Repayment (IDR) plans, such as Pay As You Earn (PAYE) and Income-Based Repayment (IBR), offer loan forgiveness after a specific period for borrowers with qualifying incomes and loan payments relative to their income.
- Loan Type: Eligibility may depend on the type of loan, such as Direct Subsidized, Unsubsidized, Grad PLUS, FFEL, or Perkins Loans. Consolidating loans through a Direct Consolidation Loan may also be a requirement.
- Financial Hardship: If repaying the loans would cause undue financial hardship, as determined by a court, the loans may be discharged.
- School Misconduct: If a college misled students or engaged in misconduct, including violating federal or state laws, borrowers may be eligible for Borrower Defense against Repayment.
It is important to note that the eligibility criteria and requirements for student loan forgiveness programs can vary and may change over time. It is recommended to review the specific guidelines and updates for each program to determine your eligibility. Additionally, seeking guidance from official sources, such as the Department of Education or Federal Student Aid, is advisable to ensure you have the most accurate and up-to-date information.
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Deceptive advertising and false claims
The University of Phoenix has been accused of engaging in deceptive advertising and making false claims about post-graduation job opportunities. The Federal Trade Commission (FTC) alleged that the university's media campaign, "Let's Get to Work", gave students the false impression that the university worked with major companies to create career opportunities. The advertising featured logos from high-profile employers, including Microsoft, Twitter, Adobe, Yahoo!, AT&T, and the American Red Cross, leading students to believe that the university had partnerships with these companies to provide employment opportunities after graduation.
In reality, the university did not have any special partnerships with these companies beyond administrative contracts with some of them. For example, a recruiter from the university claimed that enrolling before a certain date was necessary to be eligible for externships with partner companies. However, this was not true, as one former student discovered. Additionally, a Staples executive contacted the university after seeing promotional materials featuring the company's logo, questioning the nature of its involvement.
The FTC's case against the University of Phoenix focused on the university's use of deceptive advertising to attract prospective students. The FTC spent years investigating the university's national ad campaign and its relationships with various companies. In 2019, the FTC reached a record-breaking $191 million settlement with the University of Phoenix and its parent company, Apollo Education Group, resolving claims of deceptive advertising and false claims about job opportunities. The university, however, did not admit any wrongdoing.
As a result of the settlement, the University of Phoenix agreed to pay $50 million in cash to the FTC and forgive more than $140 million in student loan debt owed by students who may have been harmed by the deceptive claims. The Department of Education also announced that it would approve federal student loan forgiveness for eligible students who attended the university between September 21, 2012, and December 31, 2014, and were deceived by the school's job placement claims. Students who believe they were harmed by the university's deceptive advertising and false claims can submit a borrower defense claim through the Department of Education's Borrower Defense program to seek loan forgiveness.
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Student loan forgiveness application process
The US Department of Education has announced that it will consider forgiving federal student loans for students who attended the University of Phoenix between 21 September 2012 and 31 December 2014. This decision is based on the Federal Trade Commission's (FTC) findings that the university used deceptive advertising practices to attract students, falsely claiming to have partnerships with companies such as Microsoft, Twitter, Adobe, and Yahoo to create job opportunities for its students.
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. Here is the student loan forgiveness application process:
Step 1: Check Eligibility
Before starting the application process, it is important to determine whether you meet the basic eligibility criteria. As mentioned, the loan forgiveness program is currently only available to students who attended the University of Phoenix between 21 September 2012 and 31 December 2014. Additionally, you must demonstrate that you were deceived by the school's claims regarding job placement or other matters.
Step 2: Gather Evidence
If you meet the eligibility criteria, the next step is to gather evidence to support your claim. This may include emails, advertisements, or other promotional materials from the University of Phoenix that contain misleading or false information. If you have any correspondence or documentation that demonstrates how you were harmed by the school's deceptive practices, be sure to include that as well.
Step 3: Complete the Borrower Defense Form
The next step is to complete and submit the Borrower Defense to Repayment (BDTR) application form. This form allows students to seek relief if they have been misled or defrauded by their college. It is important to provide as much detail as possible about how the school's deceptive practices impacted you. You can find the form and more information on the Department of Education's borrower defense page.
Step 4: Submit Supporting Documentation
Along with your BDTR form, you will need to submit any supporting documentation that demonstrates how you were deceived or harmed by the University of Phoenix's practices. This may include transcripts, enrollment agreements, financial records, or other relevant evidence. Be sure to make copies of all your documents for your records before submitting them.
Step 5: Wait for a Decision
After submitting your application and supporting documentation, the Department of Education will review your claim. They may contact you if they require additional information or clarification. The time it takes to process your application may vary, but you can check the status of your application on the borrower defense page under "Manage My Applications."
Step 6: Follow Up if Necessary
If you have not received a response after a significant amount of time has passed (several months, for example), you may want to follow up on the status of your application. You can do this by contacting the Department of Education's borrower defense office or through their online portal, if available.
It is important to note that even if your initial application is denied, you may still have options. Some students have reported success in advocating for their loan forgiveness by connecting with state legislators and advocacy groups who support their claim. Additionally, if you have already received a refund or settlement from the University of Phoenix, it typically does not affect your pending application for loan forgiveness.
Remember to carefully review the eligibility requirements and follow the application process outlined by the Department of Education to increase your chances of a successful outcome.
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Student experiences at the University of Phoenix
The University of Phoenix is a for-profit academic institution that offers a range of online programs catering to working adult students. The university has received criticism for its aggressive recruitment tactics, deceptive advertising, and misleading claims about job placement and corporate partnerships. As a result, former students have faced challenges in utilising their degrees and repaying their student loans.
In contrast, other students have found their time at the University of Phoenix to be valuable. One student pursuing a doctorate in management praised the university for providing "real-time" work experience and enhancing their professionalism and teamwork skills. They acknowledged the challenges of balancing work, family, and academic life but found that the university's flexible schedule and resources, such as career advisement and writing guidance, made the journey more manageable.
The University of Phoenix has faced scrutiny for its recruitment and advertising practices, resulting in settlements and loan forgiveness programs for affected students. The U.S. Department of Education announced loan forgiveness for students who attended the university between September 21, 2012, and December 31, 2014, and were deceived by its job placement claims. This decision was influenced by the Federal Trade Commission's investigation, which resulted in a $190 million settlement from the university without an admission of wrongdoing.
The varying experiences of students at the University of Phoenix highlight the complex nature of for-profit higher education institutions. While some students benefit from the flexible schedules and career resources, others encounter challenges in utilising their degrees and feel misled by the institution's promises. As a result, the university's reputation has been impacted, with some employers viewing degrees from the University of Phoenix less favourably.
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University of Phoenix's response to allegations
The University of Phoenix has faced scrutiny and legal action from the Federal Trade Commission (FTC) and the U.S. Department of Education for its alleged deceptive advertising practices and false job placement claims. The university has been accused of misleading students with false promises of employment opportunities and partnerships with top companies. In response to these allegations, the University of Phoenix has denied any wrongdoing and disagreed with the claims made by the U.S. Department of Education and the FTC.
In a statement, a university spokesperson said, "We respectfully, but adamantly disagree with the U.S. Department of Education's allegations related to the Dec. 2019 University of Phoenix settlement with the Federal Trade Commission (FTC)." The university also stated that it had acted appropriately and did not admit any wrongdoing. They intend to challenge the loan discharge decisions that they consider invalid and will take legal action to defend themselves.
Despite the university's denial, the FTC and the Education Department presented evidence that the university had engaged in deceptive practices. They alleged that the University of Phoenix falsely advertised relationships with prominent companies and implied that students could easily obtain jobs through these connections. The university's advertising campaign, featuring companies like Microsoft, Twitter, Adobe, and Yahoo!, was deemed "'brazenly deceptive" by Richard Cordray, the Chief Operating Officer for the Office of Federal Student Aid.
The University of Phoenix settled the FTC allegations in 2019, agreeing to pay a $191 million settlement. This settlement included a $50 million cash payment to affected students and the cancellation of $141 million in student loan debt owed directly to the institution. The settlement marked a significant victory for students who felt deceived and burdened with debt.
The University of Phoenix's response to the allegations has been to deny wrongdoing and defend its practices. They maintain that they have acted appropriately and value their commitment to students. While the university intends to challenge the loan discharge decisions, the FTC and the Education Department continue to work towards providing relief to affected students and holding the university accountable for its deceptive business practices.
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Frequently asked questions
No, only students who attended the University of Phoenix between September 21, 2012, and December 31, 2014, and were deceived by the school's claims are eligible for loan forgiveness.
You need to submit a valid application for relief through the ED's Borrower Defense program. You can check the status of your application on the borrower defense page under "Manage My Applications."
Yes, you are still eligible for loan forgiveness through ED's borrower defense program. Be sure to mention it when you apply.
Fill out the application as best you can with what you remember. Some people have had success using the Wayback Machine to find old pages with information that may be useful to their claim.
The Federal Trade Commission (FTC) found that the University of Phoenix used deceptive advertising to attract students, falsely claiming to work with employers such as Microsoft, Twitter, Adobe, and Yahoo to create job opportunities for its students.
