The Biden administration will forgive almost $37 million in student debt for over 1,200 University of Phoenix attendees, as announced on Wednesday.
The U.S. Department of Education states that the relief will benefit those who applied for borrower defense discharges between Sept. 21, 2012, and Dec. 31, 2014.
The borrower defense program enables students to have their federal student loans canceled if they can demonstrate they were deceived/defrauded by their educational institutions.
The University of Phoenix's national ad campaigns falsely led students to believe that the school's partnerships with numerous corporations would enhance their job prospects.
The Education Department alleges that these advertising efforts by the University of Phoenix were misleading.
The federal student aid chief operating officer said, “Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees."
The University of Phoenix has some of the nation's highest borrowing rates, as students took out nearly $484 million in loans in the 2022-2023 academic year.
To date, the Biden administration has forgiven over $117 billion in student debt for 3.4 million borrowers.