University of Phoenix Debt Forgiveness

Still Paying the Debt for a Closed School?

You May Qualify for Borrowers Defense to Repayment Student Loan Forgiveness

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How Does It Work?

Apply For Loan Forgiveness

Call (877) 219-9225 or fill out the form above.

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One of our representatives will look at your loans and determine the best programs for you based on your specific case.

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Start enjoying lower monthly payments and full or partial loan forgiveness!

What Was The Trouble with Phoenix University?

Phoenix University faced mismanagement issues that resulted in student debt cancellation. While it enjoyed expansion in the early 2000s, in 2004, it paid out around $10 million to settle for enrollment abuse claims. The problem was that the university officials calculated the salaries of enrollment employees based on the number of the students they registered. Such an approach leads to the selection of even unqualified students because of the incentivization of enrollment numbers. 

Still, this University of Phoenix Lawsuit did not do a lot of damage at the time. The organization stayed as the largest recipient of federal student aid, particularly GI Bill tuition benefits or Pell Grant assistance funding.

The problems, however, did not end there, as students continued to claim that the university officials misled them about the credit transfer or financial aid possibilities. Also, the recruiters used ingenuine statements like “there is a limited place” or “the classes are filling fast” just to pressure students to enroll. In 2009, the organization announced that they want to settle allegations for $80 million. However, the university officials claimed that if recruiters acted inappropriately, it was their initiatives, not the university’s order.

 

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Misleading Advertising

Another University of Phoenix Lawsuit was based on the claim that the organization engaged in deceptive advertising practices. The ad they ran between 2012 and 2014 indicated the names and slogans of several famous companies, such as Microsoft or Adobe, and created an image that the graduates can get job opportunities at these companies. Also, they claimed that companies like AT&T help them to improve the curriculum so that the classes create relevant skills needed for their jobs.

As a result of the Federal Trade Commission investigations, the University of Phoenix Settlement brought $141 million worth student loan cancellation and an additional $50 million cash payment. Students who were enrolled between October of 2012 and December of 2016 could benefit from the cancellation. The extra cash was aimed to compensate people misled by the ads. However, it should be noted that the University of Phoenix Settlement was only applied to the loans that students owed to the university. Other federal or private loans of students did not benefit from this opportunity. They still need to apply to the Borrower Defense to Loan Repayment program to get rid of their loans on the federal level.

Great News

In December of 2019, as a part of the University of Phoenix Settlement, they agreed to cancel $141 million worth of debt. While this was an amazing opportunity, many students could not benefit from the settlement. The problem was that the settlement amount targeted only students that owed money directly to the university. If you still struggle with the debt, do not get disappointed. Luckily, the university faced many allegations regarding fraudulent and unlawful actions to attract more students and increase profits. Therefore, if you studied at Phoenix University, there is a high chance that you can benefit from Borrower Defense to Loan Repayment program.

What is even better is that you do not need to deal with all the complicated steps of this program as you can get the help from us! In fact, if you apply now, it is more likely that you will get a response in several years as the Department of Education receives thousands of applications and complaints. 

If you are in an extremely challenging situation and do not want to waste time with technical challenges, you can rely on our services. We will guide you through the whole process, answer all your questions and concerns. It is our business to help debtors get rid of their debts; hence, your relief is our utmost goal and the evidence of our success. For this reason, we want to be by your side in every step of the Borrower Defense to Loan Repayment plan and maximize your chance. 

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Borrower Defense to Repayment Program

Generally, this program benefits students who enrolled in schools that engaged in misleading actions and violated laws. If you are eligible, then your debt can be forgiven partially or fully. You can even get reimbursement for your previous payments. The main point in the program is that the schools were found guilty of professional misconduct, and your quality of education or professional life was damaged. Personal matters like harassment or physical injuries do not make applicants qualified for the benefit. 

Phoenix University has a history of similar allegations. The University of Phoenix Lawsuit regarding advertisement fraud or enrollment miscount is an indicator of their eligibility to the Borrower Defense to Loan Repayment program. Hence, your chances of eliminating debt is pretty high, with the help of this program. However, you need to emphasize the consequences of mismanagement to be eligible. This means you should be able to indicate that if the university had not engaged in fraudulent actions, you would not have chosen to study there and incur the debt. 

The cause-effect relation should be clear and convincing to the Department of Education in your application that the only reason for your borrowing was the illegal actions of Phoenix University. Therefore, it is better to read the first section regarding the university’s wrongdoings carefully and integrate them into your application for the maximum effect. 

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Application for the Benefit

If you have studied in this school, and believe that the University of Phoenix Lawsuit and Settlement causes can relate to your conditions, you can apply. You will need to collect some documents to prove your claim. In your application, personal information and contact details are necessary. You will also be required to enter information like enrolment period and status, the degree you obtained, and most importantly, why you think you were the victim of school fraud. This requirement includes a clear explanation of how the school convinced you and what was deceptive about their communication. By indication which laws the school broke, you will help the reviewing committee to have a better understanding of the problem. 

Additionally, your allegation should include the information of the person that communicated to you, as well as your reasons for believing you were misled. While all these details seem difficult to find and explain, they will make your case stronger. Plus, you should upload supporting documents, such as transcripts, promotional materials they provided, course manuals or catalogs, etc. 

Another element in the application is also worth paying attention to. You can choose to place your loan into forbearance or stopped collection status till the Department of Education reviews your case and makes a decision. During this period, collections from your loan will cease. Please, note that the interest will continue to accumulate. Therefore, if the decision is rejecting your application, you will have to pay the accumulated amount of interest once the forbearance status is raised.

Get Us by Your Side

As you are already familiar with the application process, you notice that it is a challenging process. Being the victim of the fraudulent activities of the Phoenix University is not enough to get your debt canceled. What is crucial is proving that the university misled you. Otherwise, the Department of Education can reject your application. There is also a high chance of rejection due to technical mistakes, lacking documents, etc. Therefore, it is better to get expert help from us. 

We have worked with many similar cases, and our experts have a full understanding of the application process. If you have studied at Phoenix University, you have an excellent opportunity to get rid of your loans. Do not waste your chance with tiny mistakes. Let us be your guiding light to a debtless future. 

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FAQ

Unfortunately, there is no exact time when you can get rid of your debt. Sometimes, it can even take years. However, you need to act fast because the continuation of the program is also questionable. The future decisions of the Trump Administration are uncertain, and the next target can be canceling this benefit. Hence, Phoenix University students should immediately apply to take advantage of their school’s misleading actions to get compensated.

If your case is approved, you can get full or partial forgiveness on your federal loan. The approval notification you will receive from the Department of Education will specify the exact percentage of discharge. Then, usually, after 90-120 days, your loan servicer will inform you about forgiveness.

The Department of Education utilizes a unique methodology to calculate the percentage of discharge. Generally, they compare the average incomes of people who graduated from Phoenix University with the others who studied in different schools. If you still earn more than them, then you will not receive any debt cancellation. However, if your earning is less than others, then you can get rid of your debt. The amount of discharge gets larger as the negative gap between your income compared to others increases. 

Only federal loans taken for study purposes at the Phoenix University are eligible for this discharge opportunity. Private loans do not qualify. Also, Federal Family Education Loan, as well as Federal Perkins Loans, cannot be canceled because of the school’s mismanagement. Still, if you wish to get rid of them, it is better if you combine them into Direct Consolidation Loan. Only after cancellation, you can apply for the discharge. 

There is a time limitation to such a claim. It matters how many years passed since your graduation till your application to Borrower Defense to Loan Repayment. If you applied within the applicable time range, then you can get a refund. Another factor they consider is the comparison of your loan payment against the amount of debt outstanding after the discharge. If your repayment exceeds, then you will receive a refund. Otherwise, you will not be eligible. Also, you can ask your loan servicer whether you qualify for a refund or not. 

You do not need to worry about interest payments because full cancellation includes any accumulated interest. However, if you get a partial discharge, the Department of Education will cancel any interest if you have applied on or before January of 2020. In this case, you will also eliminate all accumulated interest since forbearance till the approval email. 

Unfortunately, no platform allows applicants to check the status of their requests. We understand that it is difficult to wait, especially considering that the Department of Education’s review process can take a long time. Yet, no website, application, email, or phone number exists to check in what stage is your application review. 

The students of Phoenix University have a high chance of getting a discharge. Yet, if you received an undesired email notification, you could request another consideration. However, keep in mind that the forbearance status of your email will be raised once you receive a notification, so you should resume payments. Also, in your second attempt, you cannot make a new claim against your school. If you have another claim, then you should apply for that separately, not as a request for the first application. Additionally, if you have received some discharge opportunity, you can request a consideration until your loan is discharged. 

If you get rejected, even after reconsideration, the forbearance status will be inactive. It means, you should resume making loan payments monthly. Also, you must repay the interest accumulated during the review period.

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