The U of Phoenix is forced to cancel 141 million dollars of student debt due to false advertising

Discussion in 'The Locker Room' started by SJUGRAD13, Dec 11, 2019.

  1. SJUGRAD13

    SJUGRAD13 ‍♂️Which way are we going Yachiru? Supporter

    Joined:
    Oct 19, 2015
    Messages:
    35,395
    Daps Received:
    228,037
    Reppin:
    Queens and the 13 court guard squad
    Reputation:
    13,160
    Coli Cash:
    $104500.00

    U of Phoenix agrees to cancel $141 million in student loan debt
    The deal, announced Tuesday, settles a dispute over an ad campaign the for-profit college unrolled in 2012.
    [​IMG]
    The University of Phoenix Chicago Campus in Schaumburg, Illinois.Scott Olson / Getty Images file

    • SHARE THIS -
    Dec. 11, 2019, 10:45 AM EST
    By The Associated Press


    The University of Phoenix and its parent company have agreed to pay $50 million in cash and cancel $141 million in student debt to settle allegations of deceptive advertisement brought by the Federal Trade Commission.

    The deal, announced Tuesday, settles a dispute over an ad campaign the for-profit college unrolled in 2012 touting partnerships with companies including Microsoft, Twitter and Adobe. It suggested the school worked with those companies to create job opportunities for students, even though there was no such agreement, investigators found.

    The Federal Trade Commission said the settlement is the largest the agency has ever obtained against a for-profit college.

    Download the NBC News app for breaking news and politics

    “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.

    The University of Phoenix said in a statement that much of the dispute focused on a single ad campaign that ran from 2012 to 2014. It said it agreed to the deal “to avoid any further distraction from serving students.”

    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.

    Apollo Education Group owns the University of Phoenix. The Arizona-based for-profit college chain has 55 campuses across the nation and teaches thousands of students through its online programs. It's the nation's largest recipient of GI Bill tuition benefits for military veterans.

    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.

    The FTC says the $50 million payment will be used to help consumers who were misled by the ads.

    According to the FTC's complaint, the University of Phoenix created the 2012 ad campaign to distinguish itself from competitors as the chain's enrollment was falling. After conducting market research, investigators found, the chain adopted an ad strategy tying the school to successful career outcomes. The campaign was called “Let's Get To Work!”

    In one TV ad that aired in 2012, a frustrated driver weaves through a crowded parking lot looking for a space. As a narrator notes that the University of Phoenix works with companies “to create options for you," cars are suddenly lifted out of parking spaces and replaced with logos for companies including Microsoft and the American Red Cross.

    Other TV, radio and internet ads boasted of similar ties with corporate partners including AT&T, Hitachi and Avis. In one 2013 radio ad, the University of Phoenix said companies including AT&T and Adobe were “helping us shape our curriculum to make sure today’s classes help prepare you to pursue tomorrow’s jobs.” Investigators said that wasn't true.

    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. When approached to be part of the parking lot ad, for example, Staples officials said it falsely made it sound like they were helping guide the school's curriculum. The company ultimately did not participate.


    Even some senior officials at the University of Phoenix took issue with the ads. In 2012, a senior vice president complained to the chief marketing officer that using Adobe in the parking lot ad was “smoke & mirrors,” investigators found. “They are not a partner,” the vice president wrote. “We may do business with them, but nothing academically."

    The settlement was applauded by some education advocacy groups, including Veterans Education Success, which works to help military veterans. Carrie Wofford, the group's president, thanked the FTC for its work.

    “The FTC’s findings should shock every patriotic American," she said. “Enough is enough. It's time to stop the fleecing of America’s veterans and service members by predatory colleges.”







     
    Last edited: Dec 11, 2019
    Knowledge dapped this.
  2. feelosofer

    feelosofer #ninergang

    Joined:
    May 17, 2012
    Messages:
    32,503
    Daps Received:
    78,512
    Reppin:
    Brick City, NJ
    Reputation:
    3,660
    Coli Cash:
    $325000.00

    Always though that school was a scam.
     
  3. Arithmetic

    Arithmetic Veteran Supporter

    Joined:
    Mar 6, 2015
    Messages:
    43,566
    Daps Received:
    233,978
    Reputation:
    13,400
    Coli Cash:
    $225865.00

    Good. :salute:
     
    Hoodoo Child, Knowledge and SJUGRAD13 dapped this.
  4. Atlrocafella

    Atlrocafella Veteran Supporter

    Joined:
    Apr 30, 2012
    Messages:
    20,658
    Daps Received:
    67,371
    Reppin:
    Atlanta, Georgia
    Reputation:
    2,310
    Coli Cash:
    $325796.00

    :picard:That was a heavy penalty towards The University. I’m sure those students relived of their student debt are happy though.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice