Posted on Oct 10, 2015
"U.S. military bars University of Phoenix recruiting"
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From: The WSJ
The Justice Department and the Department of Education are coordinating on ongoing investigations of the University of Phoenix, a government official said Friday, a day after the Defense Department barred the for-profit school giant from recruiting on military bases and placed it on probation for alleged recruiting violations.
Shares in Apollo Education Group Inc., Phoenix’s parent company, plummeted nearly 9% on Friday after the news late Thursday that the Defense Department said it would no longer allow the school to enroll new students who are using the department’s tuition assistance program. The program provides financial aid to currently serving troops.
In June, the Department of Education said it had established an interagency task force, led by Under Secretary Ted Mitchell, to help ensure proper accountability for and oversight of career colleges and for-profit institutions. A government official said the investigations are ongoing but declined to comment further.
University of Phoenix President Tim Slottow said late Thursday that the Defense Department letter announcing the move, which the school received on Wednesday evening, caught school officials off guard.
“The University intends to continue its cooperation with federal and state agencies to respond to their requests,” he said in a statement. “University representatives have been working closely with DoD leaders and we all expected a different response from DoD.”
The University of Phoenix has more than 200,000 enrolled civilian and military students spread across 29 locations in 17 states. It derives about 1% of its income from tuition assistance from Defense Department students, according to SEC filings.
The Defense Department took the action after the school, among other things, used “challenge coins” when recruiting troops. The coins—which are bigger than a silver dollar and often have unit insignia—are often given by those in the military to one another for a job well done or to commemorate an event. The University of Phoenix used trademarked seals and insignia on their coins without the consent of the military, according to the Defense Department. The university said it has since stopped using such coins.
A June article by the Center for Investigative Reporting looking at other University of Phoenix recruiting tactics, coincided closely with U.S. Federal Trade Commission questions about the university’s practices, according to a person familiar with the matter. The Center first reported on Thursday that the Defense Department had barred the school from recruiting at military facilities.
In an SEC filing Friday and a subsequent letter to employees, Mr. Slottow wrote that the school had “already taken appropriate corrective actions.” The filing also said the Defense Department’s probation is based, at least in part, on allegations made during the FTC investigation.
“We will respond to DoD,” Mr. Slottow wrote in his letter to employees. “I will be providing more messages to students, alumni and others to set the facts straight and correct the record as certain politicians continue to spread misinformation to the press.”
On Friday, Sen. Dick Durbin (D., Ill.) sent letters to Arne Duncan, secretary of education, and Robert McDonald, secretary of veterans affairs, requesting that they take similar actions against the University of Phoenix. Neither department commented on the letters.
This follows a June letter Mr. Durbin sent to Ash Carter, secretary of defense, requesting an investigation into the school’s recruiting efforts on bases, which preceded the department’s actions against the university.
Apollo, and other for-profit schools have struggled since a 2010 Department of Education crackdown on the sector. The University of Phoenix closed 115 brick-and-mortar locations in 2012. Enrollment had dropped by more than half form its 2010 peak.
That slide has continued in the last year. Apollo’s revenue for the third quarter of 2015 was $681.5 million, compared with $793.6 million a year earlier. University of Phoenix enrollment fell 14.5% to 206,900 from 241,900 in the same period a year earlier.
The Department of Veterans Affairs, which provides approximately 8% of revenue for the University of Phoenix, will be collaborating with the Defense Department and state agencies to “evaluate any potential impact to [University of Phoenix’s] GI Bill approval, though the department is taking no action at this time, according to a spokesman.
http://www.wsj.com/articles/university-of-phoenix-barred-from-military-bases [login to see]
The Justice Department and the Department of Education are coordinating on ongoing investigations of the University of Phoenix, a government official said Friday, a day after the Defense Department barred the for-profit school giant from recruiting on military bases and placed it on probation for alleged recruiting violations.
Shares in Apollo Education Group Inc., Phoenix’s parent company, plummeted nearly 9% on Friday after the news late Thursday that the Defense Department said it would no longer allow the school to enroll new students who are using the department’s tuition assistance program. The program provides financial aid to currently serving troops.
In June, the Department of Education said it had established an interagency task force, led by Under Secretary Ted Mitchell, to help ensure proper accountability for and oversight of career colleges and for-profit institutions. A government official said the investigations are ongoing but declined to comment further.
University of Phoenix President Tim Slottow said late Thursday that the Defense Department letter announcing the move, which the school received on Wednesday evening, caught school officials off guard.
“The University intends to continue its cooperation with federal and state agencies to respond to their requests,” he said in a statement. “University representatives have been working closely with DoD leaders and we all expected a different response from DoD.”
The University of Phoenix has more than 200,000 enrolled civilian and military students spread across 29 locations in 17 states. It derives about 1% of its income from tuition assistance from Defense Department students, according to SEC filings.
The Defense Department took the action after the school, among other things, used “challenge coins” when recruiting troops. The coins—which are bigger than a silver dollar and often have unit insignia—are often given by those in the military to one another for a job well done or to commemorate an event. The University of Phoenix used trademarked seals and insignia on their coins without the consent of the military, according to the Defense Department. The university said it has since stopped using such coins.
A June article by the Center for Investigative Reporting looking at other University of Phoenix recruiting tactics, coincided closely with U.S. Federal Trade Commission questions about the university’s practices, according to a person familiar with the matter. The Center first reported on Thursday that the Defense Department had barred the school from recruiting at military facilities.
In an SEC filing Friday and a subsequent letter to employees, Mr. Slottow wrote that the school had “already taken appropriate corrective actions.” The filing also said the Defense Department’s probation is based, at least in part, on allegations made during the FTC investigation.
“We will respond to DoD,” Mr. Slottow wrote in his letter to employees. “I will be providing more messages to students, alumni and others to set the facts straight and correct the record as certain politicians continue to spread misinformation to the press.”
On Friday, Sen. Dick Durbin (D., Ill.) sent letters to Arne Duncan, secretary of education, and Robert McDonald, secretary of veterans affairs, requesting that they take similar actions against the University of Phoenix. Neither department commented on the letters.
This follows a June letter Mr. Durbin sent to Ash Carter, secretary of defense, requesting an investigation into the school’s recruiting efforts on bases, which preceded the department’s actions against the university.
Apollo, and other for-profit schools have struggled since a 2010 Department of Education crackdown on the sector. The University of Phoenix closed 115 brick-and-mortar locations in 2012. Enrollment had dropped by more than half form its 2010 peak.
That slide has continued in the last year. Apollo’s revenue for the third quarter of 2015 was $681.5 million, compared with $793.6 million a year earlier. University of Phoenix enrollment fell 14.5% to 206,900 from 241,900 in the same period a year earlier.
The Department of Veterans Affairs, which provides approximately 8% of revenue for the University of Phoenix, will be collaborating with the Defense Department and state agencies to “evaluate any potential impact to [University of Phoenix’s] GI Bill approval, though the department is taking no action at this time, according to a spokesman.
http://www.wsj.com/articles/university-of-phoenix-barred-from-military-bases [login to see]
Posted in these groups: 
University of Phoenix
Education
University of Phoenix Education
Posted 9 y ago
Responses: 13
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Other than using unauthorized military insignia on challenge coins, what did they do wrong?
There has to be more to this story than what is outlined in this story.
There has to be more to this story than what is outlined in this story.
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As with anything else, you need to be a smart consumer when it comes to education. Not only look at if the school is accredited, but also by what body. Many"for profit" institutions of learning do not heed much credit in the real business world, My advice is to steer clear of all "for profit" schools and find a well established state or private non- profit university that is regionally accredited.
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