Feds send refunds totaling nearly $50M to 147K University of Phoenix students

The Federal Trade Commission announced Wednesday that it is sending refunds totaling nearly $50 million to more than 147,000 University of Phoenix students who “may have been lured by allegedly deceptive advertisements.”

According to a news release, the payments stem from a lawsuit the FTC filed against the for-profit, online college, alleging its deceptive advertisements “falsely touted its relationships and job opportunities” with high-profile companies such as AT&T, Yahoo!, Microsoft, Twitter and the American Red Cross. The agency also alleged that the college’s ads gave the “false impression” that the school “worked with those companies to create job opportunities for its students and tailor its curriculum for such jobs.”

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A spokesperson for The University of Phoenix provided the following statement via email regarding the lawsuit.

“The FTC made allegations concerning a campaign that ended in 2014 that were not tested through litigation, and do not constitute factual findings by either the FTC or any court. The University has admitted no wrongdoing and continues to believe it has acted appropriately. This settlement agreement has enabled us to continue our focus on our core mission of improving the lives of our students through career-relevant higher education, and to avoid any further distraction from serving students that could have resulted from protracted litigation.”

In addition to the nearly $50 million in direct payments to some students, the $191 million settlement includes $141 million to “cancel unpaid balances owed directly to the school by eligible students,” the news release stated.

Per the student refunds, the FTC is mailing 146,804 checks and issuing 677 PayPal payments to students who:

• First enrolled in a master’s, bachelor’s or associate degree programs at the online school between Oct. 15, 2012 and Dec. 31, 2016;

• Paid more than $5,000 with cash, grants, federal and private student loans, or military benefits;

• Did not receive debt cancellation as part of the larger settlement; and

• Did not opt out of the online school providing the student’s contact information to the FTC.

Questions about debt canceled by the school should be directed to the University of Phoenix at UOPXFinance@phoenix.edu (link sends email) or 1-800-333-5305.

According to the FTC, students receiving payment via PayPal will have 30 days to accept the funds, while those receiving checks have 90 days to deposit or cash the funds. Questions regarding the refunds should be directed to the FTC’s refund administrator, Rust Consulting Inc., at 1-877-310-0487.

Cox Media Group