(CBS News) – University of Phoenix owner Apollo Education Group must pay $191 million to settle federal charges centered on how it marketed possible job opportunities to students promising their placement offices had solid job contacts at AT&T, Twitter and other companies, the Federal Trade Commission announced Tuesday.
Under the settlement, Apollo Education will pay $50 million in cash to the agency and spend another $141 million to cancel the debt acquired by students who were deceived by the marketing, federal officials said. The FTC said Apollo Education’s $191 million sets an agency record.
“This is the largest settlement the commission has obtained in a case against a for-profit school,” said Andrew Smith, FTC consumer protection bureau director. “Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist.”
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