University of Phoenix Settles Student Loan Lawsuit
- by Ayden
The University of Phoenix has settled a student loan lawsuit involving the repayment of a large portion of a student’s debt by agreeing to pay $50 million in cash. The lawsuit claims that the university deceived prospective students into thinking they could attend it for free, despite misleading advertisements. The university marketed itself as a “Workforce Solutions” school, offering discounted tuition to its employees in exchange for their help in marketing the school.
Fake ads led students to attend a university of phoenix
The FTC has settled a lawsuit with the University of Phoenix over false advertisements. The school agreed to return $50 million to former students and to wipe out $141 million in student debt. However, this settlement does not cover private student loans and other expenses. Students who attended the University of Phoenix in Texas or California between 2012 and 2016 may be eligible to receive a refund on school-related expenses. However, these students must have applied for financial aid before the settlement began.
The ads featured employers, giving the impression that the school has ties with large companies and tailors its education to attract them. However, the University of Phoenix has no partnerships with these companies and does not customize its curriculum to fit specific fields. This lawsuit was brought to the Federal Trade Commission after students and former employees complained about the false advertising tactics. In addition, the ads contained false and misleading claims regarding the school’s affiliation with large companies.
False advertising led students to borrow money from Navient
The U.S. Department of Education is settling with Navient over allegations that it falsely advertised student loans. The settlement will provide students with $1.85 billion in relief. Despite the settlement, Navient is still refusing to acknowledge the extent of the company’s wrongdoing. In April, U.S. Senator Elizabeth Warren lambasted PHEAA CEO, James Steeley.
The company was found guilty of false advertising and misleading consumers. It steered students into high-interest, subprime loans by allowing them to temporarily postpone payments while charging interest. In addition, Navient used risky subprime private loans to help students attend for-profit colleges. Navient knew that many students were unlikely to be able to repay their loans, so it deliberately induced them to enter into forbearance plans that did not allow them to pay down their principal. The result was that students accumulated more debt and interest payments than they needed to.
University of phoenix’s “Workforce Solutions” program offered discounted tuition to employees in exchange for their help promoting the school
However, it was not clear what students had to lose to enroll at the University of Phoenix. In the ads, recruiters claimed that students would be able to choose between a wide variety of jobs or a free education. While there were two programs in existence, these were insufficient to entice students. A University of Phoenix ad is not likely to entice someone to enroll at a school that offers more than just a free degree. Moreover, it is unlikely that the University of Phoenix would have allowed its advertising campaign to continue.
As a result, the company has agreed to pay $191 million in settlement funds to consumers, including $50 million in cash. The rest of the money will be used to reimburse consumers and to resolve claims of deceptive advertising by the FTC. Earlier, the University of Phoenix had run TV ads that promoted partnerships with big companies. They suggested that the school was working with these companies to provide job opportunities for graduates, a claim that did not hold.
UOP agrees to pay $50 million in cash to settle a lawsuit
The FTC is sending more than $50 million in cash to University of Phoenix students who filed suit after the company resorted to misleading advertisements. The company misrepresented its affiliation with various companies, including Adobe, Avis, AT&T, MGM, Microsoft, Newell Rubbermaid, Sodexo, Twitter, and Yahoo. The lawsuit targeted current and former military members, as UOP is the largest recipient of Post-9/11 GI Bill benefits. The money students receive will not affect their student loan obligations, which remain unchanged.
In addition to the payment to class members, the settlement also includes forgiveness of debt owed to the university. However, the settlement does not cover the debt students owe to federal or private loan companies. These students will have to apply for loan forgiveness through a borrower defense repayment program. Although UOP did not admit any wrongdoing in the federal complaint, it did agree to pay the plaintiffs $50 million.
UOP agrees to cancel $141 million in student loan debt
The University of Phoenix has settled a massive student loan lawsuit by agreeing to cancel $141 million in debt. The settlement will result in the cancellation of about half of the student debt that was accrued while attending the for-profit college. In exchange, the university will also pay $50 million in cash. The settlement will be the biggest of its kind for a for-profit college. The university, owned by Apollo Education Group, has 55 campuses across the country and thousands of online students. In addition, it is the largest recipient of military veterans’ tuition benefits.
The company did not admit wrongdoing. But its marketing practices were found to be unfair. It gave the impression that it was partnered with large national companies and offered tailored courses designed to help students land jobs. However, the FTC found that many students had poor job prospects and received minimal support from the school. It also targeted minority groups and veterans in its marketing campaigns, which contributed to the university’s reputation for deception.
The University of Phoenix has settled a student loan lawsuit involving the repayment of a large portion of a student’s debt by agreeing to pay $50 million in cash. The lawsuit claims that the university deceived prospective students into thinking they could attend it for free, despite misleading advertisements. The university marketed itself as a…
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- University of Phoenix Settles Student Loan Lawsuit