Settlements & Refunds · Notice
University of Phoenix refunds pass $49M
The FTC said the university advertised job opportunities with employers it did not work with. A fourth round of payments is going to people who never cashed the first check.
The Federal Trade Commission is sending another round of payments to former University of Phoenix students, bringing the total returned in the case to more than $49 million.
What the case was about
According to the FTC, the University of Phoenix relied on deceptive advertising to attract students, falsely claiming to work with employers including Microsoft, Twitter, Adobe and Yahoo to create job opportunities for its students, and to tailor its curriculum to the job needs of such companies.
The claim being advertised was not about the quality of the teaching but about what the qualification would connect a student to, which is the reason people enroll in a vocational program at all. That is what made it actionable.
Four rounds, and why
The FTC's case page records the sequence: first payments in March 2021, then further payments in July 2023 and September 2025, resulting in more than $49 million in refunds. The current round sends Zelle payments to people who did not cash their check or accept their PayPal payment.
Long-running programs look like this. A first distribution reaches most people; a meaningful share never collect, because they moved, changed banks, or assumed an unexpected check was a scam. Rather than let that money revert, the FTC comes back with a different payment method, sometimes years later. Former students in this case have now had four opportunities to be paid.
No claim, and no fee
Payments are automatic. The FTC works from the institution's own records, so eligibility is decided without any application, and there is no form to complete.
There is also nothing to pay. The FTC does not ask for money, a gift card or bank credentials to release a refund, and it does not send a link that must be clicked to verify eligibility. Education refunds are a favored template for impersonation because the amounts are plausible and the recipients are often carrying student debt; a message that asks you to pay or log in to release the money is not from the agency.
If you paid and were never paid back
Check the case page first for the period and the conduct it covers, since many people who attended the university fall outside them. If you are within them, the page names the refund administrator with a contact number. Address and bank changes are the usual explanation, and administrators can reissue.
The FTC refunds tracker lists this program with the others distributing money now, and open settlements: what to claim, and when sets out which programs need action and which do not.
What to do
- Watch the bank account linked to the email or phone number on your student record; Zelle payments arrive with a settlement note. Official link
- If you paid the university and nothing has arrived across four rounds, the case page names the administrator to contact. Official link
Questions readers ask
- Why did the FTC sue the University of Phoenix?
- For deceptive advertising that, according to the FTC, falsely claimed the university worked with employers including Microsoft, Twitter, Adobe and Yahoo to create job opportunities and tailored its curriculum to their needs.
- How many rounds of payments have there been?
- Four. First payments went out in March 2021, then in July 2023 and September 2025, resulting in more than $49 million in refunds, and the current round sends Zelle payments to people who never cashed a check or accepted a PayPal payment.
- Do I need to apply for a refund?
- No. Payments are automatic from the institution’s records. If you paid the university in the covered period and nothing has arrived, the FTC case page names the refund administrator.
Filed under: FTC refunds: who is being paid now, Open settlements: what to claim, and when
Mentioned:Federal Trade Commission
How we reported this
Built from 2 primary documents linked in the Source Card. Every number was copied from the document, not from another outlet.
Written by Mirza Seraj Baig · Checked against the documents in the source card (editorial standards).