Big Fine for ‘Exploitative’ Aussie College, Student Debt Wiped

ACCC Chair Gina Cass-Gottlieb speaks to media during a press conference at the ACCC Office in Sydney, Australia, on June 8, 2022. AAP Image/Bianca De Marchi

A court has ruled to formally annul thousands of student debts and slapped now-defunct private training college Phoenix Institute with a record $400 million (US$266.9 million) fine.

The Federal Court handed down the judgment on July 28, after earlier finding the school engaged in predatory enrolment of students, many of who racked up thousands of dollars in debt through government loan programs.