In deal with federal regulators, for-profit university cancels $141 million of student debt

by Daniel Payne · Dec 13th, 2019 3:50 pm

The University of Phoenix, a private, for-profit school long at the center of a controversy involving purported false advertising, announced earlier this week that it will cancel $141 million in student debt as part a deal with Federal Trade Commission regulators.

The school has faced numerous lawsuits and investigations over the years, many of them involving its advertising and recruitment policies. The institution allegedly used to pay its admissions counselors on a per-student-enrolled basis, a violation of federal law. The school has also allegedly engaged in fraudulent FAFSA solicitations.

The dispute in which the university ending up forgiving a large chunk of student debt involved allegations that the University of Phoenix falsely claimed it had professional connections with top-rated companies such as Microsoft and Twitter. Federal investigations revealed that the company did not in fact maintain any such relationships.


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