The most trusted and popular consumer complaints website
Explore your opportunities! Create an account or Sign In

University Of Phoenix / Axia College / Apollo Group / class action law suit: misuse of title iv funds and accounting practices: unethical business practices : scam and fraud

1 3157 E. Elwood StreetPhoenix, AZ, United States Review updated:
Contact information:
Phone: 866.766.0766

I am a united states marine on the temporarily disabled retired list residing in charlotte, nc. I qualified and received a federal student loan to pay for my university of phoenix education. Coexisting with enrollment, i was contracted with bank of america for the approximate loan amount of $9, 000.00 - $10, 000.00; a loan authorized under the title iv federal student loan program. My financial agreement and obligations were designated and contracted to federal financial aid only. I am unable to finance education without federal assistance; if i was unable to pursue federal loan i would have not nor considered an education through university of phoenix if put into the stipulation of a cash payment basis. According to federal guidelines, university of phoenix is entitled to a pro-rata share of tuition consequent to the amount of time i attended their online campus. This pro-rata sum was to be deducted from my federal loan that had been received by the university of phoenix. Instead of accepting the payment from my federal loan, without consent, university of phoenix improperly returned my federal loan monies, informing me that i was now responsible and obligated to pay any outstanding balance that the return of my federal loan had left on my university of phoenix account.

I provided payment to the university of phoenix in the form of a federal student title iv loan which satisfied my contractual obligation to pay for the time i attended uop. The university of phoenix’s actions extinguished my debt for the institutions own purposes without consent. All efforts by university of phoenix to collect on the amount they paid off without consent is not based on contract, nor reflects any obligation that i have undertaken with the university of phoenix.

University of phoenix’s action had no bearing or validation in interfering with my contract between my lenders. The actions by the institution apollo group and university of phoenix to extinguish that debt without my consent gives them no legal or lawful entitlement to collect the funds directly from me. This has not only imposed a prerequisite that was not contracted or agreed upon, but an illegal attempt to convert a federal student title iv loan owed to a third party lender, which provides certain privileges and rights; into a new and different debt owed to the university of phoenix.

University of phoenix now represented themselves that if i were not pay off the debt in full immediately; my account would be turned over to collections damaging my credit. My protest involves abuse with federal monies, breach of contract, false advertisement on university accreditation, appalling enrollment tactics, breach of verbal agreements. This university has tainted any consumer protection provided to civilians, united states military service men and woman by the american government. There are numerous lawsuits and thousands of consumer complaints of this academic institutions practices; and it is time action be commenced on the behalf of american people who have been wronged.

This university has not only misconduct itself as a academic institution, but taken advantage of thousands of north carolina civilians and military service men and woman with false advertisement with hopes of a better future, but the whole american public from coast to coast. I do not understand as serving this country in the marine corps; how our local state and federal governments could allow this leading high profiting university take advantage of us in this manner. There are thousands upon thousands complaints to consumer web sites, department of higher education, federal trade commission, and state attorney generals offices but yet action has to be taken against this institution and their unethical practices. Due to the enormous revenue generated by this organization, the company has become so powerful that it can manipulate political entities. One such entity is the department of education. If the department of education decided to perform due diligence and complete a rigorous audit of the companies accounting practices and uses of title iv funding, the department of education would have no other choice than to strip the organization of title iv funding. Matter of fact, the department of education could have used the organizations latest legal issue regarding religious discrimination (Preference to mormon's) as a basis to eliminate title iv funding; however, as usual this body of government choose to look the other way. Furthermore, the organization continues to walk a thin line in complying with title iv funding in addition to other compliance issues such as ferpa (Federal education rights privacy act) and dnc (Do not call) violations. Due to these ongoing compliance issues, the department of education could revoke its funding and strip the university of its accreditation; however, the department of education much like many of its other political counterparts choose to ignore the problem by monitoring rather than enforcing.

So why does the department of education stand absentmindedly by and let the organization do as it pleases? There are three reasons for the department of education's “hands off” policy as it relates to apollo group, inc and the university of phoenix. Those reasons are as follows: 1) the power struggle between government entities and corporate america. The financial wealth of the organization has become so massive and powerful that it can and does influence the political institution that governs its behavior. 2) the power of money extends to its lobbyists, shareholders, and the political influence of those shareholders. The politically influential shareholders have a self-interest in the financial well-being of apollo group, inc. I could list a number of politicians who hold apollo group, inc. Shares; however, i fear retribution if i were to name names. Here in north carolina, i may even come up missing. Thus, those individuals will use that power to prevent any financial harm to the organization because it will impact their financial stake in the organization as well. 3) due to the company being the largest private educational institution, the company has the largest number of students that could be negatively impacted. If the department of education decided to stop title iv funding, chaos would ensue due to the mass exodus of students to other institutions.In addition, how does the department of education manage the funds previously and currently distributed to existing students? As a result of these concerns, the department of education has taken a "hand off", wait-and-see, monitoring approach rather than perform the duties expected of the organization such as enforcement. By far from taking advantage of military personnel, low and middle class civilians; this institution contains sky-scraping numbers in profit of tax payer’s money through federal education programs in this economic downfall. I plead as a united states marine and an american; please shoot the phoenix down already; let the public be aware. Too many families and civilians have been hurt and mistreated and now is the time for action.

Reminder to indivduals about to join univesirty of phoenix: if you're not sure... Do not start class they can schedule you for class several weeks in advance and certify your financial aid before you accrue a bill. Why take chances? It is not them who will suffer if something goes sideways. Never sign a form called an "authorization to close" unless you know exactly what it means. You need to understand both the good and bad aspects of signing this form. University of phoenix usually doesn't volunteer the possible negative side of issues. There will be those of you who will say you work for university of phoenix and have not experienced any of this. Congratulations, that does not make what i have written less factual or the other thousand complaints listed in the federal trade commission data base.

The question of accreditation: apollo group, inc. Educational institutions are not accredited at the same levels of other prestigious institutions for certain disciplines such as business degrees. Please check out the mba program and its accrediting body. The university misleads students into believing that its mba degree and other business degrees are on par with other institutions such as harvard and others. For this alone, the university should be chastised by the department of education for using substandard business practices in the recruitment of its business students. This does not apply to only business students, but students in other programs such as nursing, counseling, and education. Remember, intel dropped their affiliation with the university for some of these reasons and more.
All i can say is buyer beware.

How to get out after you get in:

# 1: ignore your financial, academic, and enrollment counselors. These individuals are trained and coached in sales strategies to discourage students from dropping out or transferring. Also, do not fall for the financial aid/student loan/return to lender scare tactic. These are strategies used to put fear into students in order to keep them in class and not to leave the institution. [i was forced to use this strategy with my students on a regular basis.] another tactic is the two week break tactic. Counselor are trained and coached to keep students from not taking a break longer than two weeks. If a student takes a break longer than two weeks, the student is considered a t-drop [uopx terminology] student which affects the performance matrix of the counselors. The performance matrix is a measure or device in which counselors are evaluated for raises. The matrix can be manipulated in several ways and often times done so by management. The intent of the matrix is to force a sales-based, pay for performance strategy at the university. The performance pay structure travels a thin line in being compliant with the department of education requirements for paying counselors. Again, the department of education has turned its head away from discouraging this practice and forcing the university to use another pay structure.

#2: make sure your account is paid in full at the time you take your last class. Do not spend your financial aid money if you know that you will be leaving the school. If you have funds on account or received an excess check, do not spend these funds either. This is the hook. If you do not have the ability to pay this back at the time that you quit, you will not be able to obtain financial aid at another institution or have your transcripts sent to another institution for evaluation to be admitted. If you owe money to any institution at apollo group, be prepared for a tumultuous journey of leaving the institution. You will continue to be harassed by all your counselors and at some point the collections department.

#3: demand an official withdrawal form and make sure to get confirmation that it has been submitted to university services by any of your counselors. Do not violate any student code of conduct policy. Violating this code could prevent you from being accepted as a potential transfer student at another institution.

#4: do not let them intimidate you.


Do not refer people to the institution. Prevent them from attending out of their best interest. Trust me when i say look for other institutions. Today, many traditional schools including junior colleges offer online classes that are convenient for all learners.In the past, apollo group, inc. Had a monopoly on the industry resulting in its rapid growth over the last 20 years.In addition, beware of other similar online institutions such as grand canyon university, kaplan university, the art institute, and south university with the later two belonging to edmc. Edmc current president is todd nelson. Mr. Nelson is the former president of apollo group, inc. I recommend goggling todd nelson, university of phoenix, and learn the history of his administration and the legal battles incurred under his administration prior to attending or working for any institution under the edmc umbrella. Also, i would recommend goggling brian mueller, university of phoenix, and grand canyon university too. Mr. Mueller replaced mr. Nelson at apollo group, inc. And recently left apollo group, inc. To become the president of grand canyon university. Many former employee's of apollo group, inc. Now work at those institutions. I wonder why?

If you want a quality education from a respectable institution, search out those institutions that were brick and mortar schools that now have established online classes. A few examples of these types of schools to consider would be university of texas, university of tennessee, and the university of nebraska-omaha. You may need to meet a more stringent entrance requirement and be required to take a graduate entrance exam, but in the long-run you will definitely receive a better roi (Return on investment) on your education and institution.

If you have been wronged by the university of phoenix / axia college / apollo group: here is a list of contacts to increases federal involement and actions

Make sure you file reports and complaints with these federal and state offices or departments. The more filed will increase awareness and investigation on the university of phoenix. Also, will assist with legal litigation in your pursuit of judgment against the university.

1) federal trade commission
2) state congressman / state senators
3) department of higher education federal
4) department of higher education state
5) state attorney general
6) better business bureau
7) contact your local and national news reporting stations

Pending class action suit contact & resources:

Current class action lawsuit i am involved in against the university of phoenix / axia college / apollo group contact:

Email -

Write her a detailed informative report of your incident with the university’s actions so that it can be forwarded to the legal counsel for further review. Also leave contact information such as an email and telephone number so the legal counsel will be able to contact you.

Class action lawyers:

Closing statement:

I value that some may reply to this with their own implications of why university of phoenix is illustrious and individuals on this form are being immature. Please do be advised that i am a united states marine who does not take pleasure in going through any legal litigation with any cooperation or anyone at that. Individuals have been harmed and ill-treated by this academic institution. Respect their statements if you have experienced other wise than they have. If you feel that you have been a victim of this academic institution; please take action for yourself and the sake of other future students. I am not the only military personnel who has experienced this; but accept as true when i remark that i and other marines will not stand by and be walked on by a deceitful academic institution such as this. If you have any questions or concerns, please feel free to reach me at my personal email. Thanks

Email –

Sort by: UpDate | Rating


  • Gi
      13th of Jul, 2010
    +1 Votes


    I went for 3 semesters and the problems started when I had an issue with a teacher she was rude and foul to me online in class not in private. They transfered me to another class, and it was only going to cost $341.00 out of my pocket becasue my loans and grants paid for everything per Mike Nelson. I went to another instructors' class. Just as bad, she never gave me credit for assignments or my DQ questions. I went online to retrieve my items and proof they done kicked me off line. Then today I get a letter saying becasue I failed her class I would have to pay all the $1500 back and I would not qualify for loans or grants. It was a lie. I called a couple of colleges and taht does not happen over one class. I made A+, B+ and worked hard and made a C+ and an F in Communications. The class was boring and useless to my degree. I comparerd othe classes and schools and Axia ia sloppy.It is a money mill and they do not care about students. They never fix the problems just charge more money. They target single mothers and people with a low income it seems by reading all the comaplaints. Anyone who dares get a call stay away or hang up!!

  • Dl
      29th of Jul, 2010
    +1 Votes

    I got screwed by UOP/Axia as well. This college stinks. They returned all of my funds and sent me a bill for over a thousand dollars...they wanted it paid immediately. This has been an on-going battle with this school for almost two years now. They are holding my transcripts and will not release them to me or to the school that I am currently attending. This school is bogus and will not help at all!

  • Kc
      2nd of Aug, 2010
    +1 Votes

    I am starting my second block of classes through Axia. I am already unhappy about the school. They have some how managed to put me on academic probation and dropped one of my classes that I have just started. My current amount due is $0. I want to drop the school and transfer to a local community college. Any suggestions for me?

  • Mw
      28th of Aug, 2010
    0 Votes

    I am having same problem and I am a voc. rehab/disable student. I was injured on the job. UOP hustled me in with hopes and dreams of regaining my independence, taking advantage of me finacially and discrimination against me becauae of my disablity with bulling tactic by facilitators and supporting bulling by students, they also condone retaliation too, if you complain things get worse.They have no sympathy for student of disablity I will file a claim with ADA ACT discrimination and privicy act for violation of confidentality of condition of disablty (instructor made anoucments of my disablity in class in their lectures). I am now suffering mentally and with all the harrassment from finacial counslors ect. they have made me relapes in my health. They are not a instution for Voc. Reb as they claim to be. I am interested in joining in the class action in california or any other state that is supporting california students. How can you brib monies from a Voc. Rehab Student my grants covered everything, but yet they are holding me for money and not giving me my transcripts.

    Civil Right, Voc Rehab law suit help

    I want to join too in the class action


    12mahalia.wilson@comcast net

  • Ca
      12th of Oct, 2010
    0 Votes

    I would like to jion in Class Action suit against Axia, I filled out an application after I was told that I qualify for a grant. I got nothing but positive feedback from my teacher's, but the next thing I know I am being dropped from class sent no assignments, and my grant has turned out to be a loan, and oh yeah I have been threatned.

  • Lw
      17th of Oct, 2010
    0 Votes

    I have been a student at Axia since Sept 6, 2010. I qualified for financial aid, including Pell grant. As of today, Oct 17th, I have not received the excess amount that is supposed to come to me directly. All other financial aid has been paid on my tuition. I can't get any answers as to what date to expect my Pell disbursement to me. After reading all the complaints and now this one, I am worried that I won't get it. I am also worried that I have made a big mistake. Should I be worried? Is this how it all started with everyone else too?
    Please feel free to email me:

  • Ma
      19th of Mar, 2011
    0 Votes

    Dear United States Marine, I can't tell if this might be the issue, but I believe that if you do not complete the pre-requisite number of credits/classes, if you do not maintain a GPA average of C or better, if you drop, withdraw or do not make attendance, it is my understanding (as a Grad Student) that you have not earned the right to your Title IV funding as per the policies of the Dept. of Education and a school is legally bound to return that entire amount of Title IV funds (loans and grants) to the government -- even if they have already given you the excess funding to use for educational expenses. How a university or college deals with the "money owed" for class time used after that point -- including and grant money not earned but already given to the student -- varies from school to school. I suggest visiting and taking an "Entrance Counseling Interview." It reviews the policies and regulations a student must abide by and achieve in order to earn their Title IV funding.

  • Br
      13th of Jul, 2011
    0 Votes

    I could not have said it better. Thank you for taking the time to put together such a thorough argument.
    It is amazing to me that such an institution is allowed! Not only is it allowed, it is advertised and praised profusely!
    I was contacted 4 months ago by a national organization to collect my delinquent loan amounts (over $7000 for 4 prerequisite classes). My letter stated that If i did not start to make payments, they would begin to garnish my wages. Paying $100 a month, my debt should be paid off in about 6 years.

  • En
      8th of Apr, 2013
    +2 Votes

    My name is Ennis Patterson and I'm a student at UOP and I'm hating every minute of it. First I was told that i would be able to see a live tutor in my area, that turned out to not be the case but I was already into my second semester. I was accused of plagiary when a Professor didn't know what the word "neoteric" meant. So far I'm going into my second class of my second semester and I have two C's that I feel should be contested. I feel that the classes are set up in such a way that they can give you whatever grade they want to give you. I'm also very skeptical about who's on the other end of these on line courses. This past Saturday I called my credit union to see what was taking so long for my refund check to be uploaded to my savings accout and they told me that Apollo Group Inc. has me down for a checkings account which means that even when the check get there(credit union) they would have to send it back because I don't have a checkings account, it's a savings. I feel like they are playing games with me since I've already spoken out about their inefficiancies. I feel set-up and boxed in. Sorry all these thoughts were so random but I've had some terrible experiences with UOP since i've been there, but I'm somewhat apprehensive about speaking out too much because I know that they will try to ruin me and my higher education endeavors. (216)527-3717 There is other things too...

  • Ti
      28th of Aug, 2013
    +1 Votes

    I went to UOP online and in my last week of classes, passing them as well was dropped stating I missed a combine total of two weeks, although I was still passing it didn't matter even being in my last week of classes there. Then after all that two weeks later I receive a call from student accounts saying I owe them 958.00 dollars for tuition which I know couldn't be true because they had my financial aid and there was no way they returned it. I also called the Direct Loans- Department of Education and they stated there were no funds returned from UOP. I also checked my NSLDS and saw that there were no funds returned from UOP. So they are scamming me and with holding my official transcripts for money I do not owe them.

    My name is Tierra Lucas and I attended in 2011

  • Ti
      28th of Aug, 2013
    0 Votes

    I would like to be apart of the class action lawsuit against UOP. Tierra Lucas Frederick, MD . attended online Axia College/ Apollo Group

  • Si
      2nd of Oct, 2013
    0 Votes

    I want to be part of this lawsuit, I am having my funds taken away, owing account balance because I withdrew, classes are bogus, I was lied to, promises were made and not kept, I was sucked in and now three years of my life was wasted and 40k in debt. I want them to reimbursement me for this!!! lets ### them down

  • Se
      30th of Oct, 2013
    +1 Votes

    I also attended this scam of an institution. I attended for nearly a year. I could not get a hold of the on-line instructers when I needed help, until after my assignment was due, which in turn caused me to fail some of my classes! I took out an "automatic" student loan through Bank of America for nearly $10, 000. After failing a few of my classes as a result of "POOR COMMUNICATION" from the instructers I quit doing the classes. I then realized it was a complete waist of my time and wasn't even acredited in most work places!!! After that I started recieving letters and phone calls from the school telling me I owed them $3, 300! I refused to pay it of course. I kept recieving notices wanting me to pay! They eventually turned it over to the board of education and returned my loan back to Bank of America, but yet I was still in debt to them!!! this year (2013) they actually took my entire federal tax return. Wait i'm not done!!! Now for the past several months they have been GARNISHING 15 % OF MY PAY CHECK EVERY WEEK!!! I have a baby on the way, and as hard as it is right now to get by with a baby coming, they go and start taking 15% of what little I make every week!!! I WANT AND NEED HELP. I NEED THIS STOPPED!!! IF ANYONE CAN TRUELY HELP PLEASE E-MAIL ME @, Thank you

  • As
      25th of Dec, 2013
    0 Votes

    I am having similiar issues. The degree is doing nothing for me. I was lied to by the financial counselors and some how owe $87k for an associates, bachelor's, and one year of MBA. I see how this school has issues with being accredited as I had 4 classes where my instructors just gave me 100's on my work when I know it was nowhere near that. In fact, my business financial class my instructor gave me 100 and i forgot to attach my homework. I asked him about it seeing if it was an error and he told me to re-submit and then an hour later I had 100. The problem was the material was tough and I left some answers out and still got 100. Happened in a few more classes. Its not that I am trying to get out of paying a bill but the school is overpriced, you get lied too, and get graded for work that is far less then the grade it should be. Employers look at that too and see it as the degree not being worth anything because of that. And now the school is networking with companies... lets see I owe $87k and they have jobs like store manager at radio shack and sales person at verizon or AT&T. I guess you need to be Larry Fitzgerald to even make it looks like their program works. I would like to sue the school though.. any information email me at

  • La
      8th of Apr, 2014
    0 Votes

    My son was scammed by UoP and like others, was charged for a class that they enrolled him in and did not attend. They took complete control of his enrollment, putting him in classes that did not apply to his major, then charging him for them. They said he would need a $10, 000 student loan plus the pell grants to pay his tuition but he only received two disbursements of about $1200 in excess, which should have been around $3000. He cannot get his transcripts because they say he owes for the class they enrolled him in and he never attended. He desperately wants to go back to school but with this BS he can't get his transcripts or financial aid. I would NEVER recommend a for profit school like University of Phoenix, even though I finished my MBA at a for profit. However, my tuition was 1/4 what UoP said his was.

  • Be
      29th of May, 2014
    0 Votes

    I am also a victim of Axia college & Apollo Group /scam. I was told that I did not log in the correct amount of times and the teacher told me that I flunked the course because I did not meet the attendance requirement. The teacher said when I logged in; my answers did not meet the number of words that had to be typed in each log in attempt. The requirement was that you had to log in at least three to four times a week and so many words to make your answer legit. I asked for help plenty of times and was told to go to the student guidance link to take online tutoring and they never helped me.This took place back in 2009 of November. I’m having to pay back the $10, 000.00 because they said the Government would garnish my wages if I did not pay it back. My financial agreement and obligations were designated and contracted to federal financial aid only also. The loan was a federal student loan. I am also a United States Marine. I got an honorable discharge back in 2005 of October. Where do I go to join the Law suit?

    Is there a list or web sight you can go to get legal advise or help to know weather you qualify as a victim of fraud?

  • Ka
      18th of Aug, 2014
    0 Votes

    I have been attending the University of Phoenix since 2011, I switched from a school that did not offer a Human Services degree. UOP said they could tailor the classes to my needs. Now I am not very book smart and not all my grades are good, but I am trying my best. I have been fighting with them since the beginning, telling them they had me under a Business Management degree program. They assured me it was just a name they had to put me under something. As the classes went on none of them seem to be towards my field of interest. They continued to tell me they knew what they were doing, and I just needed to keep going, so I did. Now I have never had algebra in my life and so far not doing so good, I do not believe I will pass. They now have come out with a Human Services course, so I asked to be transferred over to this program, I was told it is too late in my current program to be transferred over. I fought with them saying this is what I was supposed to be in to begin with, , now I am over $24, 000. in the whole with Loans. And all this time feels like a waste. After this last class I am withdrawing and going elsewhere. I received my new schedule and while I still get credit for the courses I took, only 3 actually matched up with the Human Services Program. I am furious, I feel cheated, I am a single mom and time away from my kid is precious to me, and things I have missed out on just kills me. UOP is a money pit, They do not care about their students success. This is one life lesson I wish I could have missed. I failed a class and they immediately threw me into the Algebra class and charged me out of pocket for it, due to failing the class before and inform me that I may loose my financial aid. I am freaking out and so lost. Any help I can get to figure out how I can make sure no one else goes through this, people need to know they were on academic probation for a reason, and I am sure this is why..

  • Sa
      21st of Oct, 2014
    0 Votes

    University of phoenix destroyed any chance i had at getting a college degree. They walk you through web pages and tell you check this check that and never really give you an honest answer when you ask about financial aid. They had me start an online class knowing i had no internet access because i had stayed that during the walk through online. They told me i would recieve a student loan check and can get a laptop with the extra funds. So i enrole for criminal justice telling me i will have a laptop soon enough. I did do work at the library but that wasnt always an option i have a child i cant just leave for hours and expect my son to raise himself. Eventually they tell me im on academic probation and i cant get my loan. They are rediculous so is college america we need to stand together and put these scam artists to an end anyone willing to help stop this bs my number is 646-599-2627 i want to start a class action suit or help if one has already been started because i know im not the only one. 646-599-2627

  • Ch
      18th of Nov, 2014
    0 Votes

    As of February 2015 I will owe over $57, 000 in student loans for attending this college. In four years I have not once received the full amount of the FAFSA money I was awarded and in my second year I was coerced into doing the Stafford Loan even though I had the classes covered without it. They said it would help me since I was only working part time at the moment. I think it helped them out more than me because I have never seen where this Subsidized and Un-subsidized money went other than to them. The award letters and the disbursement letters they sent me detailing what money is received by them and how much will be disbursed to me apparently were wrong because I never received by me, but yet they can not tell me what, where, when, and how the money has been applied. Now I am in debt up to my eye balls and have an Associates and Bachelors degree that is not worth the paper it was printed on.

  • Do
      7th of Dec, 2014
    0 Votes

    I totally agree with all the allegations!! RIP off school with NO interests on a success story.

Post your comment