Two for-profit universities owned by the Apollo Education Group will stop including mandatory arbitration clauses in students’ enrollment agreements,
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Two for-profit universities owned by the Apollo Education Group will stop including mandatory arbitration clauses in students’ enrollment agreements, the company announced on Thursday.
Students at the University of Phoenix and Western International University will not have arbitration clauses in their enrollment agreements as of July 1, according to a news release.
The group has come under fire for its policy that does not allow students who say they’ve been defrauded to take the colleges to court. The U.S. Department of Education weighed in, saying students who feel they’ve been cheated should be able to settle grievances in court and not only in less-advantageous negotiations.
In May the Consumer Financial Protection Bureau also advocated banning the arbitration clauses, saying that if students could take their colleges to court, it would prevent the companies from breaking the law in out-of-court negotiations.
