Another good news for former students of University of Phoenix
Former students in University of Phoenix will receive $37 million student loans
In a recent article published by YahooFinance, the federal government is discharging $37 million in student loans for over 1,200 former students who attended the University of Phoenix.
The University of Phoenix student loans applies to borrowers who enrolled in Phoenix between Sept. 21, 2012, and Dec. 31, 2014, and applied for a borrower defense loan discharge, a legal ground borrowers can take against a school that engaged in misconduct related to the loan or the educational services it provided. The former students in University of Phoenix student loans will receive emails from the Department of Education by early October. Any payments made to the department on related federal student loans will be refunded.
Borrowers in University of Phoenix student loans who did not file a borrower’s defense discharge will need to complete an application on the Federal Student Aid website. University of Phoenix student loans discharge comes after the department reviewed evidence obtained by the Federal Trade Commission (FTC) in its investigation into Phoenix that resulted in a $191 million settlement in 2019.
Read Also:Biden-Harris Administration Approves $37 Million in Borrower Defense Discharges for Over 1,200 Students Who Attended the University of Phoenix
The University of Phoenix student loans brazenly deceived prospective students with false ads to get them to enroll with a national ad campaign falsely representing that its partnerships with thousands of corporations, including Fortune 500 companies, would benefit University of Phoenix student loans, for example, giving them hiring preferences at those companies.
For instance, University of Phoenix student loans did not have partnerships with companies nor did its relationship with corporate partners result in any benefits to students. Corporate partners simply allowed University of Phoenix to display their logos in a career database portal, when all the jobs posted were available to the general public, not uniquely to University of Phoenix student loans.
The Department of Education is seeking to reimburse costs for the University of Phoenix student loans defense discharge and repayment of the liabilities associated with these approved claims at a later date from the University of Phoenix student loans.