University of Phoenix $191 Million Settlement: Payout Status

Who qualifies

• The FTC paid students who first enrolled in a master's, bachelor's, or associate's degree program at the University of Phoenix between October 15, 2012 and December 31, 2016.
• You also had to have paid more than $5,000 toward the school — with cash, grants, federal or private student loans, or military benefits.
• Students who received debt cancellation as part of the settlement were not also sent a cash payment, and students who opted out of the school sharing their contact information with the FTC were not paid.
• No claim, application, or proof was required. The FTC identified recipients from records the school provided and mailed checks or sent PayPal payments directly.
• Federal student loan forgiveness through borrower defense has a much broader reach: it is open to anyone who attended the school, was deceived by its job-placement claims, and files a valid application — regardless of enrollment dates or whether they received a settlement payment.
• The settlement did not touch federal or private student loans, or military benefits. Only balances owed directly to the school were cancelled.

The University of Phoenix settlement — what happened and what is still available

1. 1

   December 10, 2019 — the FTC sued and the school settled

   The FTC filed its complaint and a stipulated order against the University of Phoenix and Apollo Education Group in the U.S. District Court for the District of Arizona, case number 2:19-cv-05772-ESW. The Commission vote was 4-0-1, with Commissioner Christine S. Wilson recused. The FTC's Bureau of Consumer Protection called it the largest settlement the agency had obtained against a for-profit school.

2. 2

   What the FTC said the ads did

   According to the complaint, the school's "Let's Get to Work" campaign featured employers including Microsoft, Twitter, Adobe, and Yahoo, giving the false impression that the University of Phoenix worked with those companies to create job opportunities for its students and to tailor its curriculum to their needs. The FTC alleged the school also misrepresented that companies such as Adobe, the American Red Cross, Avis, AT&T, MGM, Microsoft, Newell Rubbermaid, Sodexo, and Twitter helped develop its courses. In reality, the FTC said, those companies had no such partnerships, and the employers were chosen for the ads to drive prospective-student interest.

3. 3

   Who the ads targeted

   The FTC alleged the deceptive advertising specifically targeted active-duty servicemembers, veterans, and military spouses, as well as Hispanic and Latino consumers. The complaint noted the school had been the largest single recipient of Post-9/11 GI Bill benefits since that program began.

4. 4

   March 2021 — the first and largest payment round

   The FTC mailed 146,804 checks and issued 677 PayPal payments to more than 147,000 former students, totaling about $45.6 million. Checks had to be cashed within 90 days and PayPal payments accepted within 30 days.

5. 5

   July 2023, September 2025, and July 2026 — three more rounds

   The FTC sent a second round of more than $3.6 million to 130,652 people who had cashed their first payment, then a third round in September 2025, and in July 2026 began sending Zelle payments to people who never cashed a check or accepted a PayPal payment. Across all rounds, refunds total more than $49 million. Zelle payments arrive directly in your bank account with a note referencing the settlement.

6. 6

   The loan forgiveness route is still open — and it is free

   The Department of Education has approved nearly $37 million in federal loan forgiveness for more than 1,200 borrowers based in part on the FTC's case, and it continues to process new and existing borrower defense applications. Approved borrowers get full forgiveness. Apply through the Department of Education's borrower defense page; if you already applied, check the status under "Manage My Applications." Never pay a company to file this for you — the application is free.

7. 7

   Spot the impostors

   The FTC has warned that scammers impersonate the agency in this case. The FTC never asks you to pay money, transfer funds, or hand over bank or Social Security details to release a refund, and nobody legitimate charges a fee for student loan forgiveness. Questions about a payment go to Rust Consulting at 1-877-310-0487.

8. 8

   For-profit school cases keep producing money years later

   This settlement has paid out four separate times over five years, and the loan forgiveness it triggered is still being granted today. ClaimBee tracks which settlements are still paying, which have reissue windows open, and which need a claim, so a second or third round does not pass you by.

Frequently asked questions

Sources and official records

Every figure and date on this page was taken from the primary records below — court dockets, agency releases, and the settlement administrator's own notices. Payout averages we describe as averages are calculated from the official totals, not reported per-person estimates.

• FTC — University of Phoenix Settlement refund page (payment rounds and loan forgiveness)
• FTC case record — FTC v. The University of Phoenix, Inc., No. 2:19-cv-05772-ESW (D. Ariz.), File No. 152 3231
• FTC press release — record $191 million settlement ($50M cash + $141M debt cancellation)
• FTC press release — March 2021 round: 146,804 checks and 677 PayPal payments
• FTC press release — Department of Education forgives nearly $37 million for 1,200+ borrowers