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.
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.
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.