The University of Phoenix debt forgiveness process can be a complex and frustrating experience for many students. The school has faced numerous lawsuits and accusations of predatory lending practices, resulting in a significant amount of debt for its former students.
The University of Phoenix has been accused of using deceptive marketing tactics to lure students into taking out large loans, many of which were not necessary to complete their degrees. This has led to a large number of students struggling to pay back their loans.
In 2015, the Federal Trade Commission (FTC) filed a lawsuit against the University of Phoenix, alleging that the school had engaged in deceptive business practices, including making false claims about the job prospects and salaries of its graduates. The lawsuit resulted in a $15 million fine for the school.
Many students who attended the University of Phoenix are now eligible for student loan forgiveness through the Department of Education's Public Service Loan Forgiveness (PSLF) program.
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Biden Debt Forgiveness
The Biden administration has been taking steps to address the issue of student debt for those who attended the University of Phoenix.
The University of Phoenix is a for-profit college that was accused of misleading students with false advertising.
A total of $37 million in debt will be forgiven for over 1,200 former students of the University of Phoenix.
This decision is part of a larger effort to hold for-profit colleges accountable for their actions.
The University of Phoenix was found to have misrepresented its relationships with companies like Microsoft and Adobe.
The school's advertising campaign, called "Let's Get to Work", promised students that attending the school would lead to preferential hiring treatment at these companies.
However, an investigation by the Federal Trade Commission found that the university had no such relationships with these companies.
The Department of Education determined that the University of Phoenix "brazenly deceived" hundreds of students with these false promises.
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The school has maintained that it acted legally in its ad campaign, but the Department of Education disagrees.
Borrowers who are eligible for debt forgiveness will have their loans automatically discharged.
Those who believe they are eligible but were not part of the original group can apply for forgiveness on the Federal Student Aid website.
The Biden administration has already approved $72 million in forgiveness for over 2,300 students who attended Ashford University.
This decision adds to the existing pool of $14.8 billion in relief for nearly 1.1 million borrowers.
Student Loan Forgiveness
The Biden administration is taking steps to forgive student loans for borrowers who were deceived by the University of Phoenix.
$37 million in debt will be forgiven for over 1,200 former students who attended the university between 2012 and 2014.
The university allegedly misled students with false advertising, claiming they would receive preferential hiring treatment at companies like Microsoft and Adobe.
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The Federal Trade Commission and Department of Education found evidence of the university's deception, and the university has agreed to cancel $141 million in student debt to settle the issue.
Borrowers not part of the original group who believe they are eligible can apply for forgiveness on the Federal Student Aid website.
The Department of Education has approved $72 million in forgiveness for over 2,300 students who attended Ashford University from 2009 to 2020, as part of another lawsuit against for-profit colleges.
The University of Phoenix debt cancellation adds to the existing pool of $14.8 billion of relief for nearly 1.1 million borrowers whose colleges took advantage of them or closed abruptly.
The Department of Education and the Federal Trade Commission found that the University of Phoenix targeted active-duty military members, veterans, and spouses with false promises of better career opportunities.
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Frequently Asked Questions
Is the University of Phoenix being sued?
No, the University of Phoenix has not been sued, but it has agreed to a $4.5 million settlement for allegedly using unlawful tactics to recruit military students.
How will I know if my student loan will be forgiven?
You'll receive a notification when your account is identified for forgiveness, and a letter confirming forgiveness will follow. This process typically starts when your balance reaches $120, and you can track your progress on studentaid.gov.
Sources
- https://www.usatoday.com/story/news/education/2023/09/20/biden-university-of-phoenix-debt-forgiveness/70911621007/
- https://www.al.com/news/2023/09/university-of-phoenix-student-loan-forgiveness-37-million-dismissed-who-qualifies.html
- https://wordinblack.com/2023/09/biden-cancels-37-million-in-university-of-phoenix-student-debt/
- https://www.diverseeducation.com/leadership-policy/article/15634813/biden-admin-forgives-37b-of-debt-for-university-of-phoenix-students
- https://www.forbes.com/sites/mollybohannon/2023/09/20/biden-cancels-37-million-in-student-debt-for-borrowers-misled-by-university-of-phoenix/
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