![]() ![]() Kevin Dietsch/Getty Images Corinthian Colleges' SchoolsĬorinthian Colleges operated Everest, which included the Everest Institute in New York, Everest College in Phoenix, Arizona and Everest University in Florida as well as Everest University Online.Įverest also had a large number of other locations throughout the U.S., including in California, Texas, Utah and Virginia. The Biden administration is canceling student loan debt for those who attend schools operated by Corinthian Colleges. President Joe Biden speaks after meeting virtually with baby formula manufacturers at the Eisenhower Executive Office Building on Jin Washington, DC. Applying for these programs is free.Ĭlaire Kowalick, a senior journalist for the Times Record News, covers local government, military and MSU Texas.U.S. The settlement will not affect students’ federal or private loan obligations.īorrowers looking to lower their monthly payments on federal loans can obtain free information from the United States Department of Education about income-driven repayment plans, and those who believe they have been defrauded or deceived can apply for loan forgiveness through the Borrower Defense to Repayment procedures. The university states that it has been under new ownership since 2017 and is "focused on improving the student experience and outcomes while carrying on the institution's legacy of making it possible for working adults to succeed through higher education." This settlement agreement will enable us to maintain focus on our core mission of improving the lives of students through career-relevant higher education, and to avoid any further distraction from serving students that could have resulted from protracted litigation, as well as the time and expense of the litigation itself.” We continue to believe the University acted appropriately. The campaign occurred under prior ownership and concluded before the FTC’s inquiry began. “After cooperating fully with the FTC’s inquiry, we are pleased to have reached this settlement agreement and resolved this matter, which principally focused on a marketing campaign that ran from late 2012 to early 2014. The UOP is the largest recipient of post-9/11 GI Bill benefits since the program's inception.Ī press release from the UOP states the university settled with the FTC around a single ad campaign that aired in certain markets from late 2012 to early 2014, which occurred under prior ownership: This deceptive advertising targeted, in part, active and former military members. It was discovered that UOP had no such connections with these companies and did not develop their curriculum with these companies in mind.Īdditionally, the UOP misrepresented that they worked with companies like Adobe, the American Red Cross, Avis, AT&T, MGM, Microsoft, Newell Rubbermaid, Sodexo and Twitter to develop its courses, according to the FTC’s complaint. The UOP ads feature employers like Microsoft, Twitter, Adobe, and Yahoo!, which could give consumers the false impression that UOP works with these companies to create job opportunities and/or that UOP tailors its curriculum to make graduates attractive to such companies. “Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist."Īccording to the lawsuit, the for-profit school relied heavily on advertising to attract prospective students and are alleged to have targeted military and Hispanic consumers. "This is the largest settlement the Commission has obtained in a case against a for-profit school,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. Under the settlement, UOP will pay $50 million in cash to the FTC as well as forgive $141 million in loan debt from students who were harmed by the deceptive practices. The FTC lawsuit alleges since at least 2012, the UOP, and its parent company Apollo Education Group, used misleading advertising that caused consumers to believe they could get job opportunities with major companies like AT&T, Yahoo!, Microsoft, Twitter and the American Red Cross. In the largest settlement in a lawsuit against a for-profit school, the Federal Trade Commission announced Tuesday that the University of Phoenix (UOP) has agreed to pay back millions after alleged deceptive-advertising practices. ![]()
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