University of Phoenix Settles Class Action Lawsuit

The University of Phoenix recently settled a class-action lawsuit with the Federal Trade Commission. The suit alleged deceptive marketing practices, as well as advertising partnerships with corporations without curricular ties. The university did not admit to wrongdoing in the settlement, nor did it opt out of providing contact information to the FTC. However, it is still up to the Courts to determine if the settlement is enforceable.

False advertising

Students who enrolled at the University of Phoenix are set to receive checks worth almost $50 million, thanks to a settlement with the Federal Trade Commission. The university settled a class-action lawsuit filed by the FTC over its deceptive advertising. The university falsely claimed that it created jobs for students and tailored its curriculum to fit the demands of companies. The settlement will erase $141 million in student debt and $50 million in student cash. The FTC announced the distribution of the money to students on Wednesday.

While the University of Phoenix has not admitted to any wrongdoing, the misleading advertising may have caused students to enroll. For example, many ads for the school featured students with promising jobs. This may have led some people to believe that the school has a connection with the companies that they are seeking to hire after graduation. But the truth is, the school does not partner with any companies or tailor its curriculum to specific industries.

False claims act

The University of Phoenix was the subject of a False Claims Act lawsuit in 2009. This case involved two former employees who alleged that the University of Arizona abused student financial aid programs by paying admissions counselors with incentives based on the number of students they recruited. Despite the lack of government involvement, the whistleblowers obtained significant compensation. The lawsuit was settled in 2009 for a whopping $67.5 million, and whistleblowers will be entitled to an additional $19 million.

The Federal Trade Commission (FTC) recently settled the case involving the University of Phoenix. The school agreed to pay the government $50 million and forgive $140 million in student loan debt. The lawsuit claims that the advertisements were intentionally misleading and targeted at military and Hispanic students, while in reality the ads were not aimed at this specific demographic. The lawsuit also alleges that the University of Phoenix inflated its graduation and job placement rates to attract prospective students.

Class action lawsuit

In December of this year, the FTC filed a lawsuit against the University of Phoenix for misleading advertising. The university ran several ads that made it seem as if it partnered with companies and helped students land jobs. But these advertisements were misleading, and the FTC found that many students who graduated from UOP ended up with poor job prospects. The university has denied the allegations, and its spokesperson says that the $191 million settlement won’t have a significant impact on its operations.

The university has settled the complaint with the Federal Trade Commission for $191 million, but that amount is negligible compared to the amount of money the university defrauded students. In the settlement, the University of Phoenix and Apollo Education Group will cancel the remaining $141 million in student debt and return $50 million in student cash. The money will be returned to the students who enrolled in the for-profit college in question. The company has 55 days to cancel the debt and remove it from the students’ credit reports.

Settlement agreement

The university’s settlement with its students and former employees follows investigations that have lasted many years. The Federal Trade Commission (FTC) began an investigation of Apollo Education Group, which owns the University of Phoenix. In 2015, the FTC requested documents from Apollo regarding its practices regarding enrollment, financial aid, tuition and fees, debt collection, and military recruitment. It is unclear what exactly the settlement consists of, but it reflects the efforts of several stakeholders.

As part of the settlement, the University of Phoenix will pay out an estimated $50 million in refunds to students who qualify. It will also ask credit reporting agencies to remove any debt from the student’s record, and any restrictions on transcripts or diplomas imposed due to outstanding balances will be lifted. The settlement deal for the University of Phoenix class action lawsuit will not affect federal student loans. But if you’re one of the 200,000 University of Phoenix students who fell prey to the university’s deceptive advertising tactics, it may be a good idea to file for a loan discharge.

Student loan forgiveness

The University of Phoenix has settled a federal class-action lawsuit for $10 million, but this doesn’t mean it will give students who owe over $40,000 in student loans the chance to get rid of them. While the lawsuit is far from over, it does indicate that borrowers can get at least partial loan forgiveness. That being said, borrowers must have proof that they’re eligible for student loan forgiveness.

The amount of money the University of Phoenix has agreed to settle a student loan class action lawsuit is a record amount, but it’s still a drop in the bucket. The settlement will be paid to the Federal Trade Commission as consumer redress, while 141 million will be used to offer forgiveness programs for students who were harmed by the University of Phoenix’s advertising campaigns. The FTC’s investigation will determine whether the settlement offers the student loan forgiveness students deserve.

9 thoughts on “University of Phoenix Settles Class Action Lawsuit

    • Author gravatar

      I attended UOP in 2009- 2011, they told me that they partner with big companies to help students get a job after graduation. I never got any help with getting a job. I only acquired a loan that I had to pay back…then I receive a notification from loan forgiveness that I had to pay to acquire loan loan forgiveness thru IDR. This has been a down hill journey. How can I be apart of this lawsuit.

      • Author gravatar

        Same! I graduated in 2015. I never received any refunds from them or anything they took all of my financial aid money.

      • Author gravatar

        Is this lawsuit still active? I was attending the back then and recently graduated November 2022. I have been fighting with the financial aid office since I graduated. Please advise. I am looking to file one for deception of not waiting for the government check but make you increase your loan amount.

    • Author gravatar

      How do I get in the class action law sute

    • Author gravatar

      University of Phoenix lied to my wife and I 165000 in loans still no jobs as promised.

    • Author gravatar

      I have been a student at UoP since 2010, they made big promises but kept none but to charge a lot of money for classes.

    • Author gravatar

      So how does one file for this lawsuit?

    • Author gravatar

      University of Phoenix promises a lot of things. I got my degree and now I am over my head in debt and they are not accredited either. I want to look into this cause of action lawsuit and get this taken care of

    • Author gravatar

      At the end of 2004 I filled out a questionnaire from the UoP with an interest in journalism marked on the card. I received a called from an ‘advisor’ who lead me to believe if I started classes and got my basic classes “under my belt” under the courses for business by the time I completed these they might actually have enough students to get me into the journalism course which was all that I wanted. My husband was present during this call and he encouraged me to go for it even though I had no interest in a business degree. Again I was assured it would not be considered my degree goal because I wanted to learn how to become a journalist. After 2 years of a scattering of basic class and business I had enough and didn’t want to go any further. I was left with an associates degree in business that I have no use for, a large student loan debt for 2 years and nothing to show for reaching my goal of journalism, and the excuse that the option for journalism classes didn’t work out with the college. I’ve paid off all of the federal portion of this debt and make payments as I can afford over the years for the rest but I feel that I’ve paid more then enough for something that is not what I was promised back in 2004. I’d really like to talk to a lawyer, please email me

Leave a Reply

Your email address will not be published. Required fields are marked *