Significant Changes at University of Phoenix Warrant Reevaluation and Closer Scrutiny
Based on our analysis of public records and information from credible University of Phoenix employees, it is our opinion that the Higher Learning Commission (HLC) must take a closer look at University of Phoenix—for its fitness to perform its mission or meet any other criteria for accreditation.
In light of recent changes in the school, including mass closures of facilities and firing of teachers, we also believe there is overwhelming evidence that the system of schools needs to be reevaluated as soon as possible. Specific guidance has been bolded.
Background
University of Phoenix was first accredited by the Higher Learning Commission in 1978 and reaccredited in 2012-2013. The HLC placed it on notice from 2013 to 2015.
For two decades, University of Phoenix has been involved in numerous investigations and lawsuits over improper recruiting (including violations against military service members), inappropriate handling of federal student aid, and poor instructional quality. The organization has avoided greater scrutiny by settling cases out of court and using non-disclosure agreements, mandatory arbitration, and court strategies to silence victims and potential whistleblowers.
In 2017, the system of schools was purchased by Apollo Global Management, an investment firm noted for its questionable practices of stripping companies of their assets.
The school has closed most of its physical campuses and is in the process of closing many more, leaving thousands of students to study exclusively online.
Failure to Meet Accreditation Criteria
The Higher Learning Commission has five major criteria for assessing schools. We believe that if there is any bar for accreditation, University of Phoenix is perilously close to not clearing it.
- Mission
For years, University of Phoenix has chosen profits over the welfare of students and teachers. Rather than promoting diversity, it has targeted vulnerable populations, including women, people of color, service members, and veterans for a lower value education. With Apollo Global Management’s acquisition of University of Phoenix, there must be greater scrutiny in how the school is faring as an educational institution as they make significant cuts.
In an online petition to the US Congress initiated in 2015, thousands of heartbreaking stories about University of Phoenix have been submitted. The petition asks Congress to shut down the school because of its poor quality, and are asking the US government forgive the debt of its students. The petition continues to receive messages.
University of Phoenix has historically spent a disproportionate amount of money on advertising and marketing while spending as little as possible on instructional staff.
Graduation rates vary from campus to campus, but according to the Department of Education’s College Scorecard, University of Phoenix’s online 6-year graduation rate is less than 17 percent.
(2016) In Price v. US Department of Education, a University of Phoenix graduate argued that the school recruited her despite that fact that she was academically ineligible. Price wound up with more than $36,000 in student loan debt and defaulted in 2007.
(2017) In Phillips v. US Department of Education, the complainant claimed that she did not enroll in the University of Phoenix, and that a loan had been taken out in her name. The result was that her social security income had been garnished.
(2017) In Hoggett and Good v. University of Phoenix, the complainants asserted that UOPX violated the False Claims Act by submitting false certifications and making false statements to the US government that it was complying with the recruiter incentive compensation ban in order to receive federal student financial aid funding under Title IV of the Higher Education Act (HEA). (Mission, Ethics)
(2017) In Reeves v. University of Phoenix, University of Phoenix was granted a protection order to prevent public disclosure of alleged fraud.
- Ethics
According to at least one source, University of Phoenix has been under investigation by the Federal Trade Commission since 2015.
University of Phoenix has shown a pattern of unethical behavior: recruiting ineligible students, using unethical enrollment practices, and silencing whistleblowers.
At least one credible source has told us that University of Phoenix continued to enroll ineligible students until 2018. We believe they may also be enrolling students who are using fake GEDs and high school diplomas.
University of Phoenix’s enrollment records should be audited to confirm or deny whether University of Phoenix continues to enroll students who are not eligible for admittance.