University of Phoenix Removed From Probation By Department of Defense

University of Phoenix Removed From Probation By Department of Defense

University of Phoenix Taken Off Probation by Defense Department - WSJ

 

Properly their lobylists fought really hard at the Capitol. lol

 

Here's the article for those readers unable to access (non-subscription):
University of Phoenix Taken Off Probation by Defense Department - WSJ

School can once again recruit on bases, enroll new students using military tuition assistance

By Melissa Korn (WSJ)
Jan. 15, 2016 3:41 p.m. ET

The Department of Defense has removed University of Phoenix from probationary status, restarting the spigot of military tuition-assistance funds for the for-profit college operator.

The Defense Department placed Phoenix on probation in October, barring the school from recruiting on military bases and preventing it from enrolling new students who use the tuition-assistance program, which provides financial aid to currently serving troops, because of alleged recruiting violations.

The Department relieved the university of its probationary status effective Friday based upon its internal review, the school’s response to department concerns and university administrators’ cooperation, according to a Defense Department official.

“Our commitment to compliance, transparency and continuous improvement remains constant,” University of Phoenix President Timothy P. Slottow said in a statement. “We are grateful to leaders at the Department of Defense and in Congress for supporting a clear process and high standards from all educational institutions, and for ensuring military students are able to use their educational benefits for career-relevant programs at University of Phoenix.”

The Defense Department had been encouraged by Sen. Dick Durbin (D., Ill.) in June to investigate, among other things, the school’s recruitment efforts on bases.

Though it is no longer on probation, the University of Phoenix will be subject to “a heightened compliance review” for a year, according to a Defense Department official. The department also retains the right to terminate the school’s participation in the tuition-assistance program if other reports of noncompliance arise, the official said.

In fiscal 2015, funding under the tuition-assistance program represented less than 1% of University of Phoenix’s net revenue, according to a securities filing by its parent company, Apollo Education Group Inc. However, its presence on military bases helps feed its popularity among veterans. About 10% of the university’s cash basis revenue came from Veterans Affairs funding last year, according to the filing.

Apollo and other for-profit colleges have struggled since a 2010 Department of Education crackdown on the sector. Total degree enrollment fell 22%, to 227,400, in the quarter ended Nov. 30 from a year earlier, the company reported Monday. Revenue fell 18% to $586 million, compared with the year-ago quarter, and restructuring charges pushed the company to report a quarterly loss.

Apollo Education Group is exploring strategic alternatives and is in talks to be bought by Apollo Global Management LLC in a $1 billion deal, The Wall Street Journal reported earlier this week.