Statement of Sameer Gadkaree:
“At a time when millions of borrowers across the country prepare for student loan payments to resume, we are pleased that the Department of Education intervened on behalf of more than a thousand defrauded former University of Phoenix students and discharged their student loan balances through Borrower Defense to Repayment.
“Like so many for-profit institutions, University of Phoenix has a long track record of using deception and coercion to recruit students into high-cost, low-value programs based on the false promise of connecting them to some of the nation’s top employers. Instead, University of Phoenix increased their profits on the backs of its students – a practice that led to their multimillion-dollar settlement with the Federal Trade Commission in 2019.
“Today’s action is another example of the Biden-Harris Administration’s commitment to protecting borrowers and holding institutions accountable for their fraudulent and abusive recruitment tactics. It also serves as a reminder of the potential costs of entering business relationships with the University of Phoenix or other institutions with similarly troubling histories.
“TICAS continues to advocate for stronger accountability policies that protect students and taxpayers against fraud, waste, and abuse, as well as additional actions that will provide relief to thousands more University of Phoenix students.”
