Update: In 2021, the Federal Trade Commission announced it reached a $191 million settlement with the University of Phoenix. As part of the settlement, the school has agreed to cancel $141 million dollars in private student loan debt owed to the school.
To be eligible for the loan cancellation, student borrowers had to have attended the school between October 2012 and the end of 2016.
If you’re eligible, you should receive a letter and email from the University of Phoenix and its parent company, Apollo Education Group,stating: “You no longer owe any money to the University of Phoenix. You don’t have to do anything to get this relief. Your account balance will be cleared within 45 business days.” You can read more about the University of Phoenix class action settlement here.
As a current or former student of the University of Phoenix, perhaps you heard reports about loan forgiveness from old classmates or on the news.
Right now, the University of Phoenix is in a bind, mostly due to its own profit-driven ambitions that earned it this poor honor: University of Phoenix students carry more student loan debt than students of any other school.
You couldn’t guess how much money it is, so I’ll tell you. 35 Billion dollars.
The default rates are also astronomical, hovering around 25%.
As bad as the debt is, the story gets worse considering how the University of Phoenix operates.
The school inflates post-graduation salary reports, targets veterans and minorities with unfulfilled promises, and pushes its students to take out loans so that the school can profit from them in the end.
Not surprisingly, the school has faced and currently faces lawsuits. They’re hardly the only organization facing student loan lawsuits.
University of Phoenix students may already be aware of this or felt that the school misrepresented the quality of its education.
What are your options for a loan discharge from the University of Phoenix?
There are a few things to understand.