The FTC announced the settlement with the University of Phoenix on December 10, 2019. They reported that the parties reached an agreement on a 191 million USD payout for former university students. As part of the arrangement, students who owe the institution directly will get 141 million in loan forgiveness. Students must have attended the University of Phoenix between October 2012 and December 2016 to be eligible for loan forgiveness. Apollo Education Group has said on several occasions that students may rest since all qualified students’ debts would be paid within 45 working days.

How can I receive a loan discharge from the University of Phoenix?

If you have federal student loans from the University of Phoenix, the next step is to petition for a Borrower Defense to Loan Forgiveness.

The application will give you extensive questions regarding how the institution deceived you about employment opportunities, program expenses and loans, transferring credits, career and education services, and any other area in which you feel misled.

Please be as clear and thorough as possible.

If you are not already in default on your loans, you can request forbearance as part of your application.

This means you won’t have to pay anything while your application is being processed.

A few words of caution are required.

• First and foremost, do not cease paying payments unless you get notice to do so.

• Second, you must repay the interest that has accrued until your application is granted or refused.

• Third, the debt forgiveness discharge from the University of Phoenix may not be for the entire amount of your loans. It might be, but it could also discharge merely a portion of your total. Be prepared to continue paying payments after the debt has been settled.

How to Provide Support for Your Borrower’s Defense Claim

When you file your Borrower’s Defense claim, make it clear that you’re requesting that the Department of Education forgive your University of Phoenix debts because they were only obtained due of the school’s unlawful activities. In other words, you must say unequivocally that you would not have borrowed the money if the school had not misled you about something, fooled you in some manner, or made some form of false promise that they didn’t, or couldn’t, deliver on.

Pay particular attention to this point, as it is the most crucial of this entire post: in your application, you must explicitly describe what the school did to deceive you, or you may be refused the discharge and forced to continue making payments toward your outstanding loan sum.

What Should I Do If I Am Ineligible for Forgiveness?

Although loan forgiveness at the University of Phoenix is a fantastic option, it is not available to all borrowers. Other federal forgiveness options like discharge or Borrowers’ Defense to Repayment, are available. If you are still ineligible, it is best to abandon notions like debt forgiveness and focus on making your debt more manageable. Refinancing student loans, consolidation or government repayment programs can assist reduce interest payments and allow a debtor to settle the obligation. 

How will I know if my Borrowers’ Defense to Repayment application has been approved?

Following your application, the Department of Education will assess your case and tell you of the outcome. If you receive the notification through email, you will see the decision and grounds for rejection. If you are approved, you will be able to see how much debt has been reduced. Even better, if you did not receive a refund via the University of Phoenix Student Loan Refund, you can get one through this program. 

Can I stop making payments on my loans once I submit my application?

Definitely not!

You must continue to pay your loans until you get formal certification from the Department of Education that your debts have been forgiven and that you are no longer required to do so.

If you stop making payments on your loans before they’ve been dismissed, you may lose your eligibility for the Borrower’s Defense procedure and never be able to get your debt released.


While student debts might be overwhelming, they are now easier to handle than ever. “Student Loans Resolved” can address any of your questions right now. They provide you with all of the necessary information, from your eligibility to student loan settlement or payment reduction. Calling “800-820-8128” will provide you a free consultation and a rapid solution to your university of phoenix loan forgiveness problems.