New Approach at U. of Phoenix Drives Down Parent Company's Stock

March 30, 2011

The Apollo Group on Tuesday announced a quarterly loss and enrollment declines at the University of Phoenix that were largely attributable to changes in the for-profit institution's policies aimed at ensuring that more of the students it enrolls can succeed academically. The company's announcement of its second quarter results drove down its stock price, Bloomberg reported. Apollo saw enrollment of new students in University of Phoenix degree programs fall by 45 percent from a year ago, and said its policy of requiring new students with few academic credits to enroll in a free orientation program to see if they are cut out for college-level work had suppressed enrollments in the short term but put it "on a path of more consistently delivering high quality growth" in the future. Phoenix, as the biggest and most visible player in the for-profit higher education sector, has been under intense scrutiny amid discussion of increased federal regulation, and it has put in place a series of changes (including changing how it compensates recruiters), its officials have said, to try to lead the industry in a new direction.

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