Subscriber Out of this money, $141 million was loan forgiveness, while the rest, $50 million, was in the form of consumer refunds. didn’t opt out of the University of Phoenix providing the student’s contact information to the FTC. In the Wednesday press release, the FTC said it will be sending payments to more than 147,000 students "who may have been lured by allegedly deceptive advertisements. Kamenetz adds that while the FTC settlement includes debt forgiveness, it covers only debts that are owed to the university — not the money students owe on federal or private loans. You don’t have to apply or submit a claim to get a payment. Dec. 10, 2019. The $191 million settlement also canceled $141 million of … Rather, the FTC says the school simply included the company names in advertisements to entice prospective students to enroll at the University of Phoenix… The FTC is sending a total of almost $50 million to nearly 147,500 students of the University of Phoenix. "Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution's misconduct," Cardona said in a statement. The University of Phoenix is one of many for-profit schools that have been accused of defrauding students and leaving them with student debt. The university noted that the settlement involved "a single advertisement campaign that ran from late 2012 to … In it, the school says it devoted 17% of its total spending in the 2018 fiscal year to marketing costs. The FTC accused the school of running ads falsely claiming the school had relationships with companies like AT&T, Yahoo! "The FTC also alleged that UOP's advertising gave the false impression that the online school worked with those companies to create job opportunities for its students and tailor its curriculum for such jobs.". The FTC will identify people who are eligible for a payment from that $50 million. To erase those balances, students would need to apply for loan forgiveness through the borrower defense repayment program. Court documents establishing the settlement give the University of Phoenix and its parent company, Apollo Education Group, 15 business days to send an email and letter to eligible students, informing them that they're covered by the agreement. Which was sued by the Federal Trade Commission. We currently contract with … The FTC started its investigation of University of Phoenix in 2015. FTC sends out nearly $50 million to former University of Phoenix students from 2019 settlement. The average payment is $337. The FTC alleged that University of Phoenix and its parent company, Apollo Education Group, specifically targeted Hispanic and also military prospective students. The fact sheet concludes with a section titled "We Are Committed To Responsible Marketing. In one video in that campaign, a UOP student is seen driving through a school parking lot, passing spots that are filled with the iconic logos of successful companies. Since 2015, more than 200,000 defrauded borrowers have filed for a complete discharge of their loans, and last week, President Joe Biden's Education Secretary Miguel Cardona canceled $1 billion in student loans for about 72,000 defrauded borrowers, whose claims were all pending when Biden took office. "A close review of these claims and the associated evidence showed these borrowers have been harmed and we will grant them a fresh start from their debt.". The University of Phoenix says it enrolled nearly 100,000 students in 2018. And it says the school's "Let's Get to Work" ad campaign was one example of how it hyped connections with potential employers. "This settlement agreement has enabled us to continue our focus on our core mission of improving the lives of our students through career-relevant higher education, and to avoid any further distraction from serving students that could have resulted from protracted litigation.". Account active The letter also states that the school has 55 business days to tell credit reporting agencies to delete the debt from students' credit reports. The $191 million settlement also canceled $141 million of unpaid balances owed directly to the school. People who get a refund via PayPal will have 30 days to accept the payment. The FTC is sending University of Phoenix students $50 million in refunds from a 2019 settlement. In 2019, the University of Phoenix lawsuit settlement brought $191 million benefits to debtors. Start your day with the biggest stories in politics and the economy. The Federal Trade Commission is sending payments totaling nearly $50 million to more than 147,000 University of Phoenix (UOP) students who may have been lured by allegedly deceptive advertisements. Under the settlement between the University of Phoenix and the FTC, the University paid $50 million to the FTC. The university did not acknowledge wrongdoing in the settlement, an FTC record for a for-profit educational entity. Scott … Federal and private student loans aren't affected by the settlement, the FTC said. The case will be listed in our chart of recent cases resulting in refunds. In December 2019, the FTC announced The University of Phoenix and its parent company agreed to pay a … As part of the deal, the university did not admit or deny any wrongdoing alleged in the federal complaint. The University of Phoenix is paying a record $191 million to settle a complaint filed by the Federal Trade Commission accusing the for-profit university … By the way, the FTC never requires people to pay money or provide account information to get a refund or to cash a refund check. In a statement announcing the deal, Smith added, "Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist. Since 2015, the University of Phoenix has been investigated by FTC. Certain University of Phoenix students are getting checks and PayPal deposits from the U.S. government following a lawsuit alleging deceptive … ", "The refunds stem from a lawsuit the FTC filed against UOP alleging that it used deceptive advertisements that falsely touted its relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and the American Red Cross," the press release said. The enrollment at the university was high in 2010, but the numbers declined after the lawsuit. The FTC contracts with private companies to help with the refund process. According to the press release, the FTC is issuing 146,804 checks and 677 PayPal payments to students who: The release added that in addition to the nearly $50 million in refunds, the $191 million settlement included $141 million to cancel unpaid balances owed directly to the school, but other debts, including federal and private student loans, are not affected by the settlement.