U. of Phoenix Will Require Free Orientation Program

July 1, 2010

The University of Phoenix plans to require all students who enter the for-profit institution with less than 24 hours of college credit to participate in a free, three-week orientation program aimed at ensuring that students are ready for college-level work, the university's parent company, the Apollo Group, announced in a quarterly financial report Wednesday. The company said it expected that the change -- which will expand a pilot program -- would, along with changes in its marketing strategy designed to focus on stronger students, hurt its 2011 enrollment levels, "net revenue operating profit, and cash flow. However, we believe that these efforts are the right thing to do for our students and, over the long-term, will improve student persistence and completion rates and therefore reduce bad debt expense and position us for more stable long-term cash flow growth."

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