FTC Settlement with University of Phoenix

The Federal Trade Commission (FTC) reached a settlement with the University of Phoenix based on deceptive advertisements that falsely touted their relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft and other companies. The school did not have relationships with these companies. According to the FTC this is the largest settlement that they have obtained against a for-profit school. $50 million of the $191 settlement will be used to provide consumer refunds and $141 million in debt forgiveness. The settlement will not affect students’ federal or private loans but assistance is available to apply for relief and repayment plans. These services are free and students should avoid debt relief scams that charge thousands of dollars for services to help with student loan debt when these services are available for free.