University of Phoenix Canceling Loan Debt

University of Phoenix Canceling Loan Debt

The University of Phoenix has agreed to cancel $141 million in student loan debt and pay $50 million in cash as part of a lawsuit deal.

The Federal Trade Commission (FTC) sued the for-profit school because they claimed that the university was running a deceptive ad campaign in 2012. In the ads, the school said they had partnerships with major companies like Twitter, Adobe and Microsoft, and implied that they could help get graduates employed at those places.

Only students who enrolled with the college because of those ads, which ran between 2012 and 2014, are eligible to receive compensation from the settlement.

While The University of Phoenix is still operating, over 1,000 for-profit colleges and universities have closed since 2014, many of them after being accused of false advertising and predatory lending.

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