The Good, the Bad, and the Ugly of the University of Phoenix Financial Aid Refund Policy

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

Deciphering the University of Phoenix Financial Aid Refund Policy

Were you unfortunate enough to apply for the University of Phoenix financial aid program? If you took out loans from this school, use this guide to find out how to get a University of Phoenix financial aid refund!

The University of Phoenix Financial Aid Refund Policy Explained

The University has no official financial aid refund policy, but a set of events in 2019 resulted in an option that allows students who qualified for financial aid to receive a loan refund or discharge.

The Federal Trade Commission accused the University of Phoenix of fraudulent activity, including inflating its graduation rates and job placement statistics, which led to a lawsuit. The outcome is that the University of Phoenix has to discharge all federal loans.

How To Get a Loan Discharge From the University of Phoenix

To get a loan discharge from the University of Phoenix, you will have to rely on applying the Borrower’s Defense law. What that means is that you have a right to a loan discharge if the University of Phoenix tricked you into getting a loan, and it did so with false advertising.

To get a loan refund or discharge, you need to complete a Borrower’s Defense Against Repayment (BDAR) application. You can choose between completing a physical form or doing so online.

Some of the most important questions on the application are:

  • How did the school communicate with you?
  • What false information did the school provide you?
  • What information did the school fail to tell you?
  • Did the false information convince you to attend said school?

Keep in mind to be persistent about the fact that you would never:

  • Attend the school if you weren’t provided the false advertising
  • Take out loans if the school didn’t convince you to apply to it

You can request forbearance and stop loan payments until the U.S. Department of Education processes your application. To be eligible for forbearance, you mustn’t be in default on your loans.

I Submitted My BDAR Application—What’s Next?

After you submit your BDAR application, keep in mind that:

  • Loan collections will continue if you haven’t requested forbearance
  • Any loan payments you avoid will result in interest accumulation, and you will have to pay a higher amount later on
  • You have to pay taxes for your loan discharge if the U.S. Department of Education approves it because the Internal Revenue Service (IRS) treats it as income

Precautions You Should Take When You Apply for Financial Aid

You can never be 100% safe when you’re choosing a school, and promises of quick employment can make space for schools to steal money from students, so here’s a list of precautions to take while choosing a school and applying for financial aid:

  1. Look out for loan relief scams—Students who receive promises of loan reliefs via email should double-check whether the sender requires you to pay a fee to submit the necessary paperwork. Federal loan relief programs do exist, but applications are free
  2. Do your research—Education shouldn’t be treated lightly, so take your time looking for a perfect place to advance your knowledge and start your career
  3. Don’t borrow unless you have to—Loans are the last type of aid you should opt for. With plenty of federal and institutional types of funding to resort to, don’t get yourself into debt if you don’t have to

What Can I Do if a School Rejects My Financial Aid Application?

If a school rejects your application, you can request a reconsideration by writing a persuasive financial aid appeal letter.

To make the letter convincing, you should include:

  • Reasons why you chose that particular school
  • Unfortunate and sudden events that affected your financial situation since you submitted your application
  • Offers you received from other schools but haven’t accepted yet because you want to attend the school you’re writing to

to generate a personalized letter and ensure you don’t forget all the important details!

Getting More Financial Aid Is a Breeze With DoNotPay

DoNotPay can help you appeal a school’s decision to get any or request more financial aid!

To get started:

  1. in your preferred web browser
  2. Search for Appeal for More Financial Aid
  3. Answer a few questions about your application that will ensure your letter is as accurate and convincing as possible

After you complete the final step, you will get a customized letter that’s good to go. Our app can even send the letter to the university on your behalf!

If you’re curious about how financial aid works, our learning center has a plethora of guides that explain:

Alternatives to the University of Phoenix

If you’re not interested in applying to the University of Phoenix anymore, we picked out some reputable schools and explained their financial aid programs so you can make an informed choice:

Yale University Financial AidNew York University Financial AidUniversity of California, Los Angeles Financial Aid
Rutgers University Financial AidStanford University Financial AidPrinceton University Financial Aid
University of California, Santa Cruz Financial AidUniversity of California, Davis Financial AidCornell University Financial Aid
MIT Financial AidHarvard University Financial AidColumbia University Financial Aid
University of California, Berkeley Financial AidPurdue University Financial AidUniversity of California San Diego Financial Aid

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