BOISE, Idaho (CBS2) — The University of Idaho's decision to take over the University of Phoenix is under fire from three U.S. senators.
The student loan write-offs could cause severe damage to the University of Idaho's (UI) finances and ruin its name.
Kevin Richert with Idaho Education News is reporting Senator Richard Blumenthal, Senator Richard Durbin and Senator Elizabeth Warren all say the purchase will threaten UI's financial well-being, saying, "UI similarly could face Pheonix's potential liability for discharged federal loans, including thousands of pending borrower defense claims." The discharged student loan issue caused severe damage to the University of Arizona, an example mentioned by the senators.
The University of Phoenix faced charges from the Federal Trade Commission (FTC) until they settled for $191 million in December 2019. The Director of the FTC said it was the largest settlement the Commission had ever obtained against a for-profit school.
The Idaho State Board of Education approved the $550 million plan in May.
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