University of Phoenix could get schooled
The Higher Learning Commission recommends putting the for-profit college on probation for being more focused on earnings than education.
The Higher Learning Commission, a Midwest college accrediting body, recommended Monday that the 319,000-student University of Phoenix be placed on probation for having "insufficient autonomy" from its Apollo Group (APOL) parent company and for its inability "to assure the university's integrity." Translation: The for-profit schools are paying more attention to the "for-profit" part of their name than the "schools" portion.
In a filing with the Securities and Exchange Commission, Apollo Group says it plans to appeal the decision. It added that its parent-company relationship with the University of Phoenix is "customary" and that it's "neither remarkable nor improper for a parent corporation to exercise appropriate influence of its wholly-owned subsidiary."
For a subsidiary, perhaps, but most subsidiaries don't provide 90% of their parent company's revenue by wooing federal funding under the premise that they're providing education. That hasn't sat well with President Barack Obama's administration, Congress or state attorneys general who question for-profit institutions' high tuition, low graduation rates and high number of student loan defaults.
The University of Phoenix alone took 84% of its revenue from federal financial aid programs last year. That's $3.2 billion in taxpayer money, according SEC filings. Meanwhile, the school shells out for commercials, highway billboards and $155 million through 2026 to keep its name on University of Phoenix Stadium in Glendale, Ariz., home field for the NFL's Arizona Cardinals. Federal data show that not only do 22% of for-profit college students default on their loans -- which is more than double the rate of public colleges -- but 26% of University of Phoenix students defaulted on federal loans within the last three years.
The Higher Learning Commission's decision isn't final and won't be until June, but putting the University of Phoenix on probation would be a big step toward stripping it of the accreditation necessary to receive federal aid.
Apollo Group saw this coming after University of Phoenix enrollment dropped from 460,000 in 2010 to 319,000 last month. In its SEC filing, the company notes that if it's placed on probation, its reputation "could be adversely affected, which in turn may negatively impact (the) ability to recruit and enroll students and to recruit and retain faculty and staff."
More on moneyNOW
Although UoP can be a helpful option for working moms, etc., you cannot rely on their administrative staff to do their job correctly. In the event something does go very wrong, good luck talking to anyone in charge... They keep their on-site management and/or dean inaccessible to students.
The University of Phoenix alone took 84% of its revenue from federal financial aid programs last year
We the unwilling consumer (tax payers) were fleeced by them through deatbeats with the consent of the worthless federal government.
#1 I don'f care what type of college program you undertake, you get out of it what you put into it.
#2 I have degrees from Phoenix, Colorado State, and University of Wisconsin. I can tell you with no reservation that my MBA from Colorado State is not worthy of wiping my **** on it. BS in Business from Phoenix is more than paid for itself 5 times over. I also learned far more at Phoenix (100% on-line) that I did at CSU. I have a DVM from Wisconsin. When I see a resume from Phoenix I do my due diligence to make sure the candidate is for real but I have class mates from CSU MBA program that I would not hire to drive an ice cream truck.
#3 Don't think for 1 second that state universities, private universities, or even Ivy leagues are any more or less corrupt than University of Phoenix. They all chase a profit - Phoenix just does it openly while the rest operate in the shadows. I'd much rather learn from a seasoned professional than a liberal politically driven, overpaid, under experienced, tenured professor who is not judged on their performance but rather the volume of students "indoctrinated".
how do I start one of these for profit schools???
get together a few laid off professionals unable to find work turn them into professors and
bang we are rolling in $2 billion a year for life.
Taxpayer1, are you aware that many traditional universities are offering degree programs that are completed strictly in the online environment. Obviously you aren't, or you would not make a comment like that. You have know way of knowing if someone has completed their degree in this manner unless they have attended one of the diploma mill schools such as UoP. I would also like to add, that for you to be in charge of hiring puts your company in jeopardy of being sued. Your comment reeks of discrimination, and it would not surprise me if there are other discriminatory practices happening during the screening and/or hiring process. You are just one of the many people that are in positions involving human resources that should not be there.
Most people can find a cheaper and better option than any of the for profits. Give me a state university system over them anyday. I know someone who works for a for profit and she is looking for a new job because of the pressure put on her to "sign people up". Several times she has explained why a student dropped out(Pregnant) and was told to call her anyway.
They say this like it is the government's fault for their failure. They need to spend more on the students and making sure that the student get jobs to insure their funding. Performance = profit. This is capitalism at its purest form and if they can't perform and complete with public schools then they shouldn't get the money. IF they were to get the money regardless of their performance, like they are advocating, then that would be more like socialism.
we've all known for many years that Phoenix is a "buy the degree" program, NOT a valuable credentialed program.
pay your money - get the degree. FINANCE the "degree" and help them make even more money
Enough of this hating!! I have an MBA from Phoenix. I am damn proud of it. Because.....I worked my **** off. I achieved a 3.92 GPA.
I am a retired military man, and was on duty the night 9/11 went down. This was the best option for me to continue my education.
You get what you put into it. Bottom line: Folks don't expect a free ride. And, I will be damned if the 18 grueling months I spent in grad school don't mean something positive for myself, my family, and my country.
"but putting the University of Phoenix on probation would be a big step toward stripping it of the accreditation necessary to receive federal aid"
Stripping UOPX of their accreditation will indeed hurt UOPX. It will also hurt the thousands of students that graduated from UOPX successfully by tarnishing their hard-earned education and making their degree(s) worthless for gaining employment or transferring into other schools to continue their education.
Instead of going after UOPX and hurting their successful students, we should focus on holding the individuals accountable for paying back their loans and make the process for providing loans more informative and possibly more selective.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages punctuated a solid week with a subdued Friday session. The S&P 500 shed 0.2% to narrow its weekly gain to 1.7%, while the Nasdaq Composite (+0.1%) displayed relative strength. The tech-heavy index finished the week in line with the benchmark average.
Market participants went into today's session expecting to hear some new insight from Fed Chair Janet Yellen, who delivered the keynote address at this year's Jackson Hole Symposium. Unfortunately, the ... More
More Market News
These companies won't soar like other plays in the sector, but they make for great income sources.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'