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The University of Pheonix will forgive millions in debt

As part of a settlement with the Federal Trade Commission, the online University of Phoenix will cancel $141 million worth of student debt. The FTC accused the online university of making false and misleading statements in its advertising.

According to the FTC’s complaint, the University of Phoenix put out false advertising insinuating that graduates of the University of Phoenix would be offered jobs at top tech companies like Yahoo and Microsoft. The University knowingly gave “the false impression that [the university] worked with [well-known national] companies to create job opportunities for its students and tailor its curriculum for such jobs.”

Any student who enrolled in the University of Phoenix between October 2012 and late 2016 will receive a letter informing them that their debt has been eliminated and they no longer owe money to the school. The letter will state, “You no longer owe any money to the University of Phoenix. You don’t have to do anything to get this relief. Your account balance will be cleared within 45 business days.”

The FTC said that the University of Phoenix targeted minorities, military veterans, and military spouses for enrollment. The online university, at its height, had half a million students. However, enrollment in the for-profit online university has fallen dramatically due to several investigations into its practices.