UoP shutting down campuses and cutting jobs

Apollo Group to cut jobs, shut half its campuses

I guess, it was a matter of time.

 

WOW. I've been so focused on the Ashford debacle that I didnt even see anything about UoP being in trouble. Guess the writing was on the wall, though. They have one of the worst reputations out there. Whether deserved or not.

 

Many are calling it, the fall of for-profit colleges. I believe if UoP continues to fail, most of the for-profit colleges are going to face some serious decline of enrollments and loss of profits. Even though, there are chances that for-profit colleges are willingly to convert to non-profit, but who knows? Time will tell.

 

I'm glad I never received that job offer from UoP. I probably would have been one of the few they would have cut since typically the new people cut due to lack of seniority. God has a wonderful way of protecting his children.

 

So the people that lost their jobs are not God's children?

 

Compete based on price and value like other industries.

My guess is that overpriced education in general is in trouble. Maybe people are getting smarter and the sticker shock is just too much.

Hopefully, the for-profits will compete in the other direction and see who can be the most affordable. Penn-Foster and Ashworth are good examples of super cheap education, like $50-$65 per semester hour and self paced. Maybe if Phoenix offered a really cheap correspondence program they'd get more takers. It never made sense to me to pay so much just to work on group projects and post on discussion boards.

 

Oh yeah, and maybe people want to avoid new debt altogether. There are a quite a few for-profit schools that operate without federal financial aid and offer payment plans that most people can handle. Of course, they're NA schools, but my guess is that RA for-profits could be competitive if necessary. The student loan system is risky business for most people.

 

No they are not....they help Apollo Group to bring students to debts. Therefore, they are categorized under EVILS:saevil:. :kidding: I don't know! It is a tough call...less student loan debts, but more unemployment.

 

Randell, my friend, I'll leave it at this so we don't go so off topic...

This is just one of the ways I believe God has intervened in my life, and it doesn't mean that all people who are working are God's children. It simply means that God provides provision when we least expect it. For example, when I received the news that I didn't get the job, I was quite happy. I was overjoyed, because I realized that in some way God had a purpose for not opening that door of opportunity. I didn't know exactly what, how or why things panned out, but I know that it was a good thing that it didn't. I realize that having "UoP" on my resume might be a stigma to future opportunities (this is solely an opinion). With all the fiascoes and negative publicity going down with Ashford and UoP, I am glad I don't work for either of them. Am I happy that it many people lost their job... NO! However, I also believe, in due timing, that God will provide a more suited opportunity for those who lost their positions.

 

I was making that comment as a joke (guess I should not quit my day job). By the way, I also believe everything happens for a reason (for our highest "good") even if it is not obvious at the time.

 

Anyone who is surprised by this hasn't been paying attention. I've been posting quarterly updates on the plunging enrollments at UoP in another degreeinfo thread, most recently on Tuesday of this week.

UoP, at its peak in 2010, was the largest university system in the US (and probably the largest in the world, outside of Asia). Since then, it has undergone one of the greatest collapses in the history of higher education, and the end is not in sight.

 

I have been noticing not just UoP, but other for-profit colleges as well. It seems that most of the for-profit colleges are seeking more qualify students that has a better chance on graduating, but are unable to find those students. It also seems that a very few for-profits colleges are raising their admission requirements so that the retention rate wouldn't be so high.

 

The key point for the profit-schools is not whether or not the students graduate. The key point is whether or not they pay back their student loans.

The business model for virtually the entire for-profit education sector relies on the availability of government financial aid, particularly student loans. Unfortunately, an unusually high percentage of for-profit students default on those loans after they leave school, leaving taxpayers (not the schools or the lenders, of course) on the hook. There is growing political pressure to cut student loans to schools with high default rates.

The for-profits formerly enrolled anyone with a pulse -- but now they are looking for students who won't default. One stock analyst describes UoP's situation like this:

It was a whole lot easier to keep enrollments high back in the good old days, when student quality didn't matter.

 

Although, you're partially correct, CalDog. Here's another prospective to look at though. The problems with most for-profit schools is students are unable to complete the entire programs. For example, a student who is attending a for-profit school, and that particular student was unable to study and complete the programs with a passing grade, therefore that student has dropped out of the programs. Since that student dropped out, the student carry a huge student loan debt. In the end, that student have no degree to show and have a massive student loan to repay. I believe that's what causing probably 50% of the default rates. Graduation and retention rate is an important factor when it comes toward for-profit colleges, and yes, paying back the loans is definitely one of the huge issues as well. If the graduation and retention rate were higher, I believe students are able to obtain the degree they desire and have the opportunity to seek employment.

There's a DeVry campus nearby to where I live and I spoke to one of the current student who took up to 70k of student loans, trying to finish his bachelor degree. He was unable to transfer since many of his courses at DeVry were not being accepted to the colleges nearby, and he couldn't drop out since he already took a massive student loan to pay for his education. This is one example I believe the is the main cause of for-profit colleges. Seeking unqualify students who are unable to pass simple classes at college level.

I have nothing against for-profit colleges, as I attend to one. But, since most for-profit colleges are now offering scholarships, people need to reconsider which college will be the cheapest in the end. I only have to pay 4k per year with all of my scholarships and grants.

 

Correct-a-mundo!

 

Wait? I didn't know that God is now a head hunter... Must have missed that memo!

Anyway, it is sad that people are losing their jobs, not to mention the impact this will have on students currently attending those campuses. Should be a big wake up call for the industry.

 

Presumably yes, there is a relationship between graduation rate and repayment rate. In general, students who successfully make it to graduation are probably more likely to repay their student loans than those who drop out. So if schools can become more selective, and enroll higher quality students, they could improve both their graduation and default rates.

But the bottom line is that the default rate is driving the changes -- not the graduation rate. Think about it:

Suppose a school had a low graduation rate -- but also a low default rate. For example, maybe the school teaches a skill that is in such high demand that even those who don't complete the full program can find work, which enables them to repay their loans. From a political/taxpayer perspective, there would be no problem in this situation, despite the low graduation rate.

Or suppose a school had a high graduation rate -- but also a high default rate. For example, maybe the school teaches a skill that is in such low demand that even successful graduates can't get good jobs, and are unable to repay their loans. From a political/taxpayer perspective, this would still be a problem, despite the high graduation rate.

So ultimately the graduation rate isn't the most important factor, from a political/taxpayer perspective. It really boils down to whether or not the loans are being repaid.