The owner of University of Phoenix is halting mandatory arbitration with students who claim to have been deceived or defrauded by the school.

Apollo Education, which operates University of Phoenix and Western International University, announced that it will no longer include mandatory arbitration clauses in its arbitration agreements effective July1.

Previously, concerned students and graduates at the schools found that their recourse against Apollo was arbitration -- a private, out-of-court system for dispute resolution that often is more expensive and tilted heavily in favor of major corporations.

Arbitration clauses have received increasing scrutiny by the U.S. Department of Education and the federal Consumer Financial Protection Bureau


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