University of Phoenix Agrees To Cancel $141 Million In Student Loan Debt

Education Stocks Plunge As Apollo Withdraws Forecast

Education Stocks Plunge As Apollo Withdraws Forecast

The University of Phoenix has agreed to cancel $141 million in student loan debt as part of a settlement with the Federal Trade Commission over allegations of deceptive advertising. The charges stem from an advertising campaign that ran from 2012 through 2014, in which the school promoted partnerships with some of the biggest tech companies in the world, including Twitter, Amazon, and Apple.

The school said that they worked with the companies to build their curriculum and would help them get jobs with those companies. Despite the school's claims, there were no partnerships or agreements with any company to help students find jobs after graduating from the for-profit college.

“Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist," said Andrew Smith, director of the Federal Trade Commission's Bureau of Consumer Protection.

In addition to canceling the debt, the college will also have to pay $50 million to students who were misled by the ads. 

The FTC said that the settlement only covers debts that are owed to the university and does not include federal or private loans. Students with those loans will need to apply for forgiveness with the U.S. Department of Education

Photo: Getty Images

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