University of Phoenix borrowers are finally seeing some relief as the Biden-Harris administration announced $37 million in student loan forgiveness for over 1,200 students. This decision comes after the U.S. Department of Education found that the university had misled students through a national advertising campaign, making false promises about employment opportunities.
Richard Cordray, the Federal Student Aid Chief Operating Officer, expressed his outrage at the university's deceptive tactics. He stated, "The University of Phoenix brazenly deceived prospective students with false ads to get them to enroll. Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees."
This $37 million in debt relief is part of a larger effort by the Biden-Harris administration to provide relief to student borrowers. In total, over $117 billion in debt cancellation has been approved, including $14.8 billion for 1.1 million borrowers affected by school closures or deceptive practices.
The Department of Education plans to notify affected borrowers by early October, and any remaining loan balances will be completely forgiven. Additionally, the Department intends to seek repayment from the University of Phoenix in the future for the liabilities associated with these claims.
This announcement brings hope to University of Phoenix borrowers who have been burdened by debt and disillusioned by the false promises made to them. It serves as a reminder of the importance of holding educational institutions accountable for their actions and ensuring that students are not exploited for financial gain.
