Biden administration announces $37 million settlement for University of Phoenix students
Sep 20, 2023, 3:00 PM
(University of Phoenix Photo)
PHOENIX — Student loan borrowers who attended the University of Phoenix around 10 years ago may be eligible for a payout, officials said Wednesday.
That’s because the Biden-Harris Administration announced a $37 million disbursement. Leaders allege the school misled students about the benefits of enrollment from 2012 to 2014.
Officials said more than 1,200 students who enrolled in the school from Sept. 21, 2012 to Dec. 31, 2014 and applied for relief will benefit.
The Federal Trade Commission already settled a case with the school in 2019, earning $191 million payout, the announcement said. However, the U.S. Department of Education wanted to investigate further. Officials pored over the evidence presented in the FTC’s case against the University of Phoenix.
Ultimately, they found that the school misrepresented its partnerships with thousands of corporations. This led students to believe they’d receive preferential treatment when applying for jobs at thousands of companies, officials said.
“Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees,” Federal Student Aid Chief Operating Officer Richard Cordray said in a statement.
Eligible borrowers who may qualify for relief can apply for defense through the Federal Student Aid office. Applicants will find out if they’ve been approved by early October, officials said.
“These borrowers will see any remaining loan balances zeroed out and credit trade lines deleted,” the announcement said. “Any payments they made to the Department on their related Federal student loans will be refunded.”