University of Phoenix student loan forgiveness works through several separate routes. There is no single University of Phoenix forgiveness application; borrowers seek relief on federal loans through borrower defense to repayment, which you file at studentaid.gov, while the FTC settlement relief mostly arrived automatically. Which route applies depends on whether your debt is a federal loan, a debt owed directly to the school, or a private loan, so identify that first.
Last reviewed: October 2026.
Searches for “University of Phoenix student loan forgiveness” mix together several different programs: a 2019 Federal Trade Commission settlement, a 2023 Education Department discharge, and the ongoing borrower defense process. They have different rules and different deadlines. This guide explains each one and walks you through the application as of October 2026.
What happened: the FTC settlement and the 2023 discharge
On December 10, 2019, the FTC announced a $191 million settlement with the University of Phoenix and its parent company, Apollo Education Group. The agency alleged the school ran ads suggesting relationships with employers such as AT&T, Yahoo!, Microsoft, Twitter and the American Red Cross that would help students find jobs. According to the FTC, those companies were not shaping the curriculum or creating opportunities as the ads implied. The allegations were the FTC’s claims in its complaint.
The settlement had two parts:
- $50 million in cash for consumer redress, paid out to former students.
- About $141 million in cancelled debt that former students owed directly to the university.
The FTC noted the settlement did not change students’ federal or private loan obligations. That separate question went to the Department of Education. In September 2023, the Department approved about $37 million in borrower defense discharges for more than 1,200 borrowers who attended the University of Phoenix between September 21, 2012 and December 31, 2014. The Department relied partly on the FTC’s investigation and found the national ad campaign misled prospective students, according to NASFAA’s report.
Which type of debt do you have?
| Type of debt | Relief route | Do you apply? |
|---|---|---|
| Federal Direct Loans | Borrower defense to repayment | Yes, through studentaid.gov |
| FFEL or Perkins loans | Consolidate into a Direct Loan first, then borrower defense | Yes |
| Balance owed to the university itself | FTC settlement cancellation | Reported to be automatic |
| Private loans | Not covered by borrower defense; see our private loan guide | Depends on the lender |
Look up your federal loans by logging in at studentaid.gov. Private loans appear on your credit report but not in that account.
Who may qualify for University of Phoenix student loan forgiveness
Borrower defense lets the Department cancel federal Direct Loans when a school misled you in a way that harmed you. The standard depends on when your loan was first disbursed, according to a summary by the National Consumer Law Center and other advocates:
- Before July 1, 2017: a claim based on state law.
- July 1, 2017 to June 30, 2020: the 2016 rules, which allow claims based on a court judgment, breach of contract or substantial misrepresentation.
- On or after July 1, 2020: the 2019 rules, which require showing a knowing or reckless misrepresentation, reasonable reliance and financial harm.
These rules have been in litigation and legislation, and some summaries say a 2025 law blocks the 2022 rules for loans made before 2035. Because details change, read the current eligibility page at studentaid.gov before you file. Evidence that the Department, the FTC or a state attorney general took action against the school can strengthen your case, but you still need to explain how the conduct affected you personally.
How to apply, step by step
- Gather your records. Collect enrollment papers, brochures, emails, recruiter names, tuition costs and any promises about jobs, pay or credit transfers.
- Write down specifics. The application asks what the school told you, when, who said it and how it affected your choices. Detailed answers help.
- Complete the form. Apply online at studentaid.gov. The form is long, so save a copy of everything you submit.
- Decide about forbearance. If your loans are not in default, the Department generally places them in forbearance while it reviews your case unless you opt out. Interest can keep accruing in forbearance.
- Track your case. Check your studentaid.gov account and email for requests for more information.
Processing times vary from months to years, and there is no guaranteed schedule. Keep making payments unless your servicer tells you to stop.
If your claim is approved or denied
An approved claim cancels part or all of the loan balance and can include a refund of payments you made on the discharged loans. The Department decides how much relief to give, and a discharge may cover only part of your debt. Under current rules a denial may be final for newer loans, so reread your decision letter carefully and consider speaking with a nonprofit legal aid group. If the government discharged the loan, ask your servicer to update your credit reporting and keep the approval letter; see can forgiveness be reversed.
Taxes and other consequences
Tax treatment depends on the type of relief. I could not confirm a specific IRS ruling for borrower defense discharges, and the tax exclusion for most other student loan forgiveness expired after 2025, according to the IRS. Check our overview of student loan forgiveness taxes and ask a tax professional. Time spent in forbearance during review does not count toward PSLF or income-driven forgiveness.
University of Phoenix student loan forgiveness: what this means for you
- Log in to studentaid.gov and list every federal loan tied to your University of Phoenix enrollment.
- Look for any letter or email about the FTC settlement; it should come from the FTC or its claims administrator.
- If you have federal loans and believe the school misled you, prepare and file a borrower defense application.
- Consider interest-only payments while the claim is pending if you can afford them.
- Read our overview of federal forgiveness programs for other options.
Scam warning: The FTC says it never asks anyone to pay to receive a refund. Do not pay a company to file borrower defense for you; the application is free. Use only studentaid.gov, ftc.gov, or an official notice you can verify.
Common mistakes to avoid
- Assuming the 2023 discharge covers you automatically. It applied to borrowers with approved claims from a specific enrollment window. If you enrolled at another time, you generally need to file your own claim and show how the school harmed you.
- Giving vague answers. Statements such as “the school lied” are weaker than specific details: what an admissions advisor told you, which program you enrolled in, and what happened with your job search.
- Skipping the loan inventory. Some students had a mix of federal loans, private loans and a balance owed to the school. Each follows a different process, so list them all before filing.
- Missing mail. Update your address and email at studentaid.gov and with your servicer, since requests for more information have deadlines.
- Falling for look-alike sites. Only apply through the official federal site. Third-party sites that charge a fee are not part of the process.
If your situation is complicated, a nonprofit legal aid organization or a state attorney general consumer office may offer free guidance. For other types of discharge, see disability-related forgiveness.
Worked example: three University of Phoenix student loan forgiveness scenarios
The routes differ by debt type and enrollment period, so three illustrative former students show how the pieces fit. We invented the names and amounts.
Renee enrolled in 2013 after seeing advertisements about employer partnerships, borrowed $22,000 in federal Direct Loans and left without finishing. She was in the group the Department of Education identified in 2023, received a notice that the Department discharged her loans under borrower defense and saw her balance drop to zero. She did not need to apply; her job was to keep the notice and check that the servicer and credit bureaus updated the account.
Marcus enrolled in 2014, borrowed $30,000 in federal loans and has not received any notice. He files a borrower defense application at StudentAid.gov, describing the advertising he relied on and attaching screenshots, enrollment records and emails from his admissions adviser. His loans go into forbearance while the Department reviews the claim. If the Department approves it, it discharges the balance and may refund payments made since the relevant date; if it denies the claim, he can request reconsideration with new evidence.
Keisha owed $4,000 directly to the university for unpaid tuition and also had a $15,000 private loan from a bank. The FTC settlement cancelled the $4,000 owed to the school, and she received a letter confirming it. Neither the settlement nor borrower defense touched the private loan, so her options for it are the lender’s own hardship programs or a negotiated settlement, as explained in our guide to private student loan forgiveness options.
Checklist: evidence that strengthens a borrower defense claim
- Enrollment dates and program. Pull your transcript or enrollment agreement so the Department can match you to the period covered by its findings.
- The advertisements or statements you relied on. Save screenshots, brochures, emails or notes describing claims about employer relationships, job placement or transferability of credits.
- Proof of reliance. Explain in your own words how those statements influenced your decision to enroll or borrow. Dates and names of advisers help.
- Loan records. Download your loan list from StudentAid.gov so you can identify each federal loan tied to the enrollment.
- Harm. Describe what happened afterward: credits that did not transfer, jobs you could not get, or a program that closed.
- Prior relief. Note any FTC settlement payment or discharge you already received, so the Department does not duplicate or deny on that basis.
- Submit through the official portal only. The StudentAid.gov borrower defense page is free; companies charging to file the same form add nothing.
Who University of Phoenix student loan forgiveness does not cover
Students who enrolled outside the periods addressed by the Department’s findings are not automatically excluded, but they carry the burden of showing specific misconduct that affected them. A general sense that the degree was not worth the cost is not enough under the borrower defense standard.
Private loans, Parent PLUS loans taken out by a parent and debts to third-party lenders are also outside the FTC settlement. Parent PLUS borrowers can file their own borrower defense claim for federal loans in their name, but private borrowers cannot. Students who completed their programs and found work in their field may still qualify if they meet the misrepresentation standard, but they should expect closer scrutiny.
Finally, anyone whose debt the Department already discharged cannot receive a second discharge for the same loans, and refunds are limited to payments made on those specific loans. If a discharge later comes into question, our guide on whether student loan forgiveness can be reversed explains the rules.
Sources and further reading
- FTC: University of Phoenix settlement announcement (December 10, 2019)
- NASFAA: $37 million in borrower defense discharges for Phoenix borrowers
- Federal Student Aid: Borrower defense to repayment
- Student Loan Borrower Assistance: Borrower defense rules and what borrowers need to know
- IRS Tax Topic 431: Canceled debt
Frequently asked questions
Is there a University of Phoenix student loan forgiveness program?
Not a single program. Relief came through an FTC settlement, a 2023 Education Department discharge for certain borrowers and the ongoing borrower defense process for federal loans.
How do I apply for University of Phoenix loan forgiveness?
If you have federal loans, you apply for borrower defense on studentaid.gov. The FTC settlement relief was reported to be automatic and did not require an application.
Who got the 2023 discharge?
The Department of Education approved about $37 million for more than 1,200 borrowers who attended between September 21, 2012 and December 31, 2014 and had filed borrower defense claims.
Does the settlement cover private loans?
The FTC said the settlement did not change students’ federal or private loan obligations. Private loans are a separate matter with the lender.
Do I have to keep paying while my claim is pending?
The Department generally places non-defaulted federal loans in forbearance during review unless you opt out, but interest can accrue. Follow instructions from your servicer.
More University of Phoenix student loan forgiveness questions
How long does borrower defense take?
There is no set timeline. Cases can take months or years, and staffing and rule changes can affect speed.
Will I owe taxes on a borrower defense discharge?
I could not confirm a specific IRS rule. Ask a tax professional and review IRS guidance on canceled debt.
Is University of Phoenix student loan forgiveness still available in 2026?
Borrower defense remains open for federal loans, so former students can still file claims. The FTC settlement payments and the 2023 group discharge were one-time actions, and no new automatic round has been announced.
Can I get a refund of payments I already made on University of Phoenix loans?
If the Department approves a borrower defense claim, it may refund payments made on the discharged loans, depending on the dates and the terms of the decision. FTC settlement refunds were separate, and the FTC has already distributed them.
Does a borrower defense discharge for University of Phoenix loans count as income?
Borrower defense discharges have historically been treated as tax-free under IRS guidance for school misconduct cases. Confirm the current treatment for your tax year, because the broader federal exclusion for forgiven student loans expired at the end of 2025.
This article is general information, not legal, tax or financial advice. Rules change, so confirm details with the official sources above or a qualified professional before you act.