The University of Phoenix will be back in Idaho District Court in 2025 unless Apollo Global Management can find another buyer for the school. Apollo Group, the primary owner of the University of Phoenix, has been trying to unload the school for years.
Although the University of Phoenix appears to be a profitable institution, it has potential liabilities, including hundreds of millions of dollars in Borrower Defense to Repayment fraud claims that the US Department of Education could claw back from the parent owner. While this risk may be seriously reduced over the next four years, that danger could rise again under a progressive administration.
As of 2023, there were approximately 73,000 Borrower Defense claims against the school. More than 19,000 Borrower Defense claims were approved for student debtors who attended the University of Phoenix and were part of the Sweet v Cardona settlement. Many of the remaining claims are still awaiting a decision from the Department of Education.
University of Phoenix debtors are saddled with an estimated $21.6 Billion in student loan debt.
The University of Phoenix has been involved in a number of lawsuits over the last decade. In 2019, the Federal Trade Commission and the University of Phoenix settled a claim for $191M for deceptive employment claims, but the school denied any wrongdoing.
