The Biden administration has canceled $37 million in student loan debt for former University of Phoenix students defrauded by the school.
"The University of Phoenix brazenly deceived prospective students with false ads to get them to enroll," said Richard Cordray, the federal student aid chief operating officer.
"Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees," he said.
The deal with cancel the debt of 1,200 former students who the administration says were tricked into believing the school had connections with Fortune 500 companies.
"Phoenix management was aware that the corporate relationships the school claimed to have did not exist," the Education Department said. "One senior vice president at Phoenix described one of the advertisements in question as 'smoke & mirrors.' "
President Joe Biden in a statement said his administration wouldn't stand for colleges "taking advantage of hardworking students and borrowers.
"As long as I am President, we will never stop fighting to deliver relief to borrowers who are entitled to it — like those who attended University of Phoenix — and we will hold colleges accountable for misleading and cheating their students."
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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