The U.S. Department of Education is forgiving $37 million in federal student loans borrowed by roughly 1,200 people who went to University of Phoenix.
And the department is still approving applications from those who the Federal Trade Commission says were hoodwinked into enrolling about a decade ago.
Last month, the University of Idaho said it expects to close a deal to buy University of Phoenix in early 2024.
The FTC accused University of Phoenix in 2019 of using deceptive ads to falsely tout their relationships and job opportunities with companies such as Microsoft.
The outcome was a $191 million settlement that was part cash-fine and mostly forgave student loans owed to the for-profit university.
The FTC says the Education Department is now forgiving federal loans built on work done years ago.
A University of Phoenix spokesperson says it disagrees with the department’s allegations, has admitted no wrongdoing and that the government’s claims were never tested in court.
