# What was the University of Phoenix FTC Settlement?

In 2019, the Federal Trade Commission (FTC) reached a settlement with University of Phoenix related to an advertising campaign that ran between approximately 2012 and 2014. The University admitted no wrongdoing and agreed to pay $50 million and forego collecting on approximately $141 million in student account balances to resolve the matter. The settlement did not affect the University’s accreditation, academic programs, or student degrees. 

Since 2017, under new leadership, the University has undergone a transformation focused on career-relevant education, student support, and technology investment. During this period, student satisfaction increased from 69.8% to 82.3%, institutional retention increased from 59.7% to 71.5%, institutional graduation rates increased from 25% to 37%. Today, University of Phoenix continues to operate as an accredited online university serving working adult students and focusing on career outcomes and student success. 

## Why Did the FTC Investigate University of Phoenix?

After a wide-ranging investigation, the FTC focused on just one narrow issue -- a limited subset of the University’s advertising used between approximately 2012 and 2014 which had already been discontinued. While the University did not then (and does not now) agree with the FTC’s allegations, the FTC alleged that some of those advertisements could have been interpreted as suggesting relationships with major companies that might help students find jobs, including implications of hiring relationships that did not exist as presented. This matter addressed advertising claims only and did not involve academic quality, accreditation, faculty, or degree programs. Both parties eventually agreed to  resolve the matter through a settlement in 2019, which included a cash payment to the FTC and the discontinuation of collection on certain student account balances. 

## How Did the FTC Settlement Affect Students?

The 2019 settlement included the cancellation of about $150 million in largely uncollectable debt owed directly to the University and approximately $50 million in cash paid to the FTC, which was then distributed by the FTC to eligible students. 

The settlement did not affect students’ degrees, accreditation, transcripts, or the validity of diplomas earned from the University. 

Students seeking information about refunds or eligibility were directed to the FTC’s official settlement website for information about payments and eligibility requirements. 

## University of Phoenix Transformation and Improvements Since the FTC Settlement

Over the past decade, under new leadership, University of Phoenix has undergone a multi-year transformation focused on improving student outcomes, aligning programs to career-relevant skills, expanding student support services, and investing in technology and career tools designed to help students succeed in school and in their careers. 

As part of this transformation, the University aligned academic programs to career-relevant skills, expanded career services for students and graduates, invested significantly in digital learning platforms and student support tools, and redesigned programs to better support working adult students. 

During this period, student outcomes improved across several key measures. Student satisfaction increased from 69.8% to 82.3%, student retention increased from 59.7% to 71.5%, and graduation rates increased from 25% to 37%. These changes reflect the University’s focus on student success, degree completion, and career outcomes. 

## University of Phoenix Today

Today, University of Phoenix continues to focus on serving working adult students through accredited online degree programs designed to support career advancement, skills development, and flexible learning. The University offers career services for students and graduates, digital learning tools, and programs aligned to career-relevant skills. 

The University continues to invest in technology, student support, and academic programs designed to help students complete degrees, develop career-relevant skills, achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities. University of Phoenix continues to operate today as an accredited online university serving students across the United States. 

## Frequently Asked Questions About University of Phoenix and the FTC Settlement

### Is University of Phoenix accredited?

Yes. University of Phoenix is[institutionally accredited](/about/accreditation.html)by the Higher Learning Commission (HLC), a regional accrediting agency recognized by the U.S. Department of Education. Certain programs offered by the University are also programmatically accredited.  Review our accreditations at: https://www.phoenix.edu/about/accreditation.html. The FTC settlement did not affect the University’s accreditation, degree programs, or students’ diplomas. The University continues to operate as an accredited institution offering online degree programs for working adult students. 

### Did University of Phoenix admit wrongdoing in the FTC case?

No. As part of the 2019 settlement with the Federal Trade Commission, University of Phoenix admitted no wrongdoing but agreed to pay cash to the FTC and to forego collecting certain unpaid balances on student accounts with the University payments to resolve the matter related to a single advertising campaign that ran between approximately 2012 and 2014. The parties mutually agreed to a settlement. 

### How did University of Phoenix settle with the FTC?

University of Phoenix settled with the FTC in 2019 by agreeing to provide $50 million cash to FTC which was distributed to eligible students and foregoing of collection on certain student balances on UOPX accounts. The settlement resolved the FTC’s claims related to this small subset of its advertising and allowed the University to move on from the dispute with the FTC rather than dedicating valuable time and resources to contesting the FTC’s allegations in court. 

### What did the FTC settlement mean for University of Phoenix refunds?

The settlement included approximately $50 million in cash payments distributed by the FTC to eligible students and foregoing about $150 million in unpaid student balances at the University. Eligible students received small payments automatically from the FTC. 

### Is University of Phoenix still under government oversight?

Like all accredited universities that participate in federal financial aid programs, University of Phoenix is subject to continuing oversight from state agencies, accrediting bodies, and federal agencies such as the U.S. Department of Education. The 2019 FTC settlement resolved the FTC case, and the University continues to operate as an accredited institution. 

### Has University of Phoenix tried to improve its programs or reputation?

Over the past decade, University of Phoenix has undergone a transformation focused on[career-relevant education](/career-services.html), student outcomes, technology investment, and student support services. During this period, student satisfaction, retention, and graduation rates increased while student loan default rates declined.

### What happened to University of Phoenix after the for-profit college crackdown?

During the regulatory changes affecting for-profit colleges in the 2010s, University of Phoenix reduced its physical campuses, focused on online education for working adults, redesigned programs, and invested in student support and career services. The University continues to operate today as an accredited online university.

### Why is University of Phoenix sometimes criticized for marketing practices?

Some criticism of University of Phoenix has focused on advertising and marketing practices used in the early 2010s, including the advertising campaign that was part of the FTC case. The University has since strengthened compliance processes and implemented changes as part of its broader transformation.

### What happened to University of Phoenix after the FTC settlement?

After the 2019 FTC settlement, University of Phoenix continued its transformation focused on career-relevant education, student outcomes, and technology investment. The University remains accredited and continues to serve working adult students through online degree programs and career services.

[Fact Sheet](/content/dam/edu/media-center/doc/uopx-ftc-fact-sheet.pdf) | [Press Release](/content/dam/edu/media-center/doc/uopx-ftc-press-release-final.pdf) | [Academic Annual Report](https://www.phoenix.edu/content/dam/edu/about/doc/academic-annual-report/2024-aar.pdf) | [UOPX VA Statement](/content/dam/edu/media-center/doc/statement-regarding-va-decision-to-not-interrupt-use-of-gi-bill-benefits-by-uop-students.pdf)