Univ. of Phoenix and its parent company have agreed to pay $50M in cash and cancel $141M in student debt to settle allegations of deceptive advertisement brought by the Federal Trade Commission.
“The campaign occurred under prior ownership and concluded before the FTC’s inquiry began. We continue to believe the University acted appropriately,” the company said.
Under the settlement, the University of Phoenix and Apollo will cancel all remaining debt for students who first enrolled between Oct. 1, 2012, and the end of 2016. Letters will be sent to borrowers saying they no longer owe payments to the school. The school is also barred from making false claims about its relationships with companies or employers.
Instead, many of the companies touted as corporate partners were actually part of the University of Phoenix's"Workforce Solutions” program that provided discounted tuition to their employees in exchange for the companies' help promoting the school.Some companies that were asked to participate in the ads raised objections about the way they were being portrayed, investigators found.
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