For-profit colleges

ITT faces new scrutiny from Education Department and states in wake of SEC charges

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Education Department steps up scrutiny of ITT's finances in wake of SEC charges, while two states ban company's eligibility for GI benefits.

For-profit Kaplan University expands its competency-based offerings with new transcript

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Kaplan University creates new "competency reports" for all 45,000 students, a move that adds momentum, and risks, for competency-based education's spread. 

Federal appeals court requires Heritage College to defend itself against fraud claims in lawsuit

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A federal appeals court orders for-profit Heritage College to answer charges it violated federal law by altering records for federal aid -- overturning lower court dismissal.

Colleges and the Education Department scramble to help former Corinthian students amid largest college shutdown

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Education Department and community colleges try to help Corinthian students transfer, but Senate Democrats and consumer groups complain about for-profits as a transfer option.

Feds take down a for-profit over job-placement rates as gainful-employment rules loom

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Education Department turns up heat on for-profits with job-placement-rate scrutiny, three months before gainful-employment rules kick in. But lack of federal standards for placement rates causes confusion.

Nonprofit university becomes a 'benefit corporation,' further blurring for-profit divide

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To tap into private investment funds while retaining its public mission, a California nonprofit university becomes a "benefit corporation." Is the status legit -- and will other colleges follow?

Essay by the University of Phoenix's new president on quality at the for-profit

Last week, we learned on this site that Matt Reed’s son had recently sincerely asked this question: “Is the University of Phoenix a good school?” I have been gratified by the response from Inside Higher Ed readers -- and from Reed himself. But much is at stake in that question, especially for those we serve at the University of Phoenix -- those long underserved by traditional institutions. And I want to answer it publicly.

Is the University of Phoenix a good school? Yes. Yes, it is. And we’re working to make it an even greater school for nontraditional students everywhere. Our students expect quality, career-relevant degree and certificate programs. We’re providing instruction with dedicated faculty that bring real-world experience to the classroom. We are online and at local campuses in more than 30 states.

I came to the University of Phoenix last year from the University of Michigan. My peers in Ann Arbor came up to me and offered congratulations when they heard the news. I was told countless times, “University of Phoenix is an important institution. I’m glad you’re going there.” And a surprising number of colleagues within the UM community came to me and told me of their own positive experience, or a family member’s, at the University of Phoenix. For example, one UM student -- the first in her family to attend college -- was pursuing a graduate degree at Michigan (which she has since completed). She told me that she never would have progressed academically had it not been for the role the University of Phoenix played in her life (she completed her bachelor’s degree here).

To be sure, the institution has its complexities and challenges. But, like all schools, especially those that serve nontraditional students, we’re continuously in a mode of evaluating, assessing and working to improve student learning outcomes and the entire student experience. In 2014, the University of Phoenix awarded more than 73,000 degrees, and we’re strongly positioned to continue playing a vital role in American higher education for decades to come.

Our institution is large and well-known, yes, but it need not continue serving as shorthand for larger debates about for-profit higher education, which are often politically motivated. Our mission is to provide access to higher education opportunities that enable students to develop the knowledge and skills necessary to achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities. The University of Phoenix has played an important role in higher education in this country by successfully serving nontraditional adult students at scale.

Over the past seven months, I have been spending an enormous amount of time meeting with and listening to the stories of our students and our dedicated adjunct faculty. The passion our faculty have for teaching, innovation and student outcomes is palpable. Similarly, our students’ dedication is apparent. They have told me time and time again, “It is hard work, but it is not impossible.” The reason they came to this school is not just to prepare for an occupation and career advancement, but to change the perspectives of their children, and to change the trajectory of their families for future generations. It is the individual stories of our students that I wish were amplified in the media. That’s unrealistic, of course, but I am committed to telling as many stories of our students, graduates, faculty and staff as possible.

I wish most of all that Reed’s son could have been with me in Pasadena last Friday when I met the families of the University of Phoenix graduates featured in these videos here -- graduates like Evelyn “Vonn” Banks, the former Command Master Chief for Naval Sea Systems Command. I spent time with Vonn last week. Here is how she answers the question: Yes, University of Phoenix is a great school. Vonn has had a groundbreaking career as the most senior ranking non-commissioned female officer in the U.S. Navy. Her success was made possible, in part, by the three degrees earned from University of Phoenix. She is working on a fourth degree – truly epitomizing her personal motto: “I am a Phoenix, and I never quit."

I could fill this Web site with stories like that of Vonn Banks, and we are nearing 1 million graduates of the University of Phoenix.

Reed’s son asked a sincere question. He deserves an answer and I have invited Reed to visit with us in Arizona. He will find a rigorous, career-focused, innovative curriculum that is adapted to how adult students learn and a unified team committed to high-touch, high-tech student support, focused on students’ learning and career outcomes.

At some point, I hope readers of Inside Higher Ed will stop and visit a local University of Phoenix campus before making up their minds. Spend time on and consider taking a course online before summarily passing judgment.

I spoke recently at a general session of the American Council on Education (ACE) and the University Professional and Continuing Education Association (UPCEA). They had convened in San Antonio to hear from national leaders. Before the general session began, the new president-elect of UPCEA, David Schejbal of the University of Wisconsin-Extension, stood to speak at the podium. He said, “We don’t typically talk to the for-profits,” which was met with good-natured laughter that I took as acceptance, agreement or, at least, understanding. Then he said, “We have a lot to learn from the University of Phoenix. I think that for-profits are not what we think they are. I’ve spent a lot of time with Tim Slottow, and his team’s focus on meeting the needs of adult students is really something we need to listen to.”

I am grateful for Schejbal. We have found similar leaders with open minds throughout the country. We are working closely together with a growing number of researchers at top-tier research universities and foundations who are eager to develop insights into how, together, we can measurably raise learning outcomes for all adult students. Our work with the Thurgood Marshall College Fund, the Gates Foundation (where Bill Gates himself paid us a visit) and researchers at Stanford University is just the beginning of what I hope will be a rich experimental learning environment for all devoted to the needs of nontraditional students. That is, I believe, among the best ways to honor the memory and resilience of our founder, John Sperling.

Whether friend or skeptic, our doors are open to all those working to serve nontraditional students, especially your readers at Inside Higher Ed.

Tim Slottow became president of the University of Phoenix in June 2014. Before joining the university, he served as the executive vice president and chief financial officer at the University of Michigan.

Guaranty agency buys half of Corinthian Colleges and forgives $480 million in student debt

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ECMC closes deal to buy 53 Corinthian campuses, earning praise from federal agencies and some consumer groups for deal to forgive $480 million in students' private loans.

Essay on the significance of the Super Bowl being played in the University of Phoenix Stadium

With all the Super Bowl hype (and there was plenty before the game, given Deflategate), little attention has been paid to the irony of where the actual game was played in Arizona: the University of Phoenix Stadium. Yes, really. 

Is there anything we can learn from the Super Bowl’s location for those of us toiling in the weeds of higher education?

The University of Phoenix, which boasts online enrollment in excess of 200,000 students at present (a decline from only several years ago when they had well more than half a million students), offers hundreds of degree programs at the undergraduate and graduate levels. Its Web site promotes a variety of tutoring and support programs, and the university has actual physical locations for classes in 39 states, although most courses are offered online.  

There is one thing the University of Phoenix most assuredly does not offer: intercollegiate athletics. Why would an institution of higher learning have a stadium named after it when that institution has no athletic offerings?

So, here’s a brief quiz as to possible explanations for why the University of Phoenix agreed in 2006 to pay $154.5 million over 20 years for the right to have its name used in perpetuity on the then new stadium in Arizona. Pick a, b, c, d, or e:

a. The university and its parent company, Apollo Education Group (enterprise value of $2.11 billion) could afford it. Compare this amount to the size of the 15th largest university endowment (Duke University) --  $6 billion in 2013.

b. It provides excellent ongoing marketing of the university, with its name promoted as part of the events held at the stadium, which include one of the most highly viewed sports events in the world. (Note: It’s the site of the Final Four in 2017.) Aren’t all higher education institutions investing in ways to market themselves better?

c. The stadium is big, holding up to 72,200 people with room for expansion, paralleling the university’s expansive approach to online learning that can serve thousands of students. What college is not looking to grow enrollment?

d. The construction of the stadium involved many partnerships, including with the Arizona Sports & Tourism Authority, and the University of Phoenix also just partnered with historically black colleges. Which institution is not seeking increased revenue or savings through partnering?

e. All of the above.

The answer, of course, is all of the above.

Now, for the bonus question: Who is the star high school running back who indicated he considering attending the University of Phoenix (actually, if the truth be told, he might likely want to play in its stadium for the Cardinals a year or two after he starts college)? The answer is Soso Jamabo, who is cleverly taking a swipe at the absurdity of college recruiting by conducting interviews against a backdrop containing the names of institutions he might ostensibly choose to attend -- including the University of Phoenix. By the by, the University of Phoenix tweeted that it was accepting Jamabo as a student.

Here’s a more deliberative take on all this. The very questions raised by the Super Bowl’s location are emblematic of the issues facing higher education: developing unique marketing opportunities to improve student enrollment and institutional name recognition; sorting through complex fiscal choices including strategies for developing auxiliary revenue streams; assessing the role, quantify and quality of online learning for students; addressing the challenges and cost of intercollegiate athletics; identifying partnership opportunities that improve the student experience and reduce costs or increase revenue; and determining what new construction merits the expenditure and accompanying borrowing. 

University of Phoenix Stadium brings to mind the Shakespearean question, “What’s in a name?” spoken by Juliet. The answer here is this: nothing and everything.

Karen Gross is the former president of Southern Vermont College.


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For-profit chain leaves the stock market to save money on public disclosures

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Education Management Corp. goes private as its enrollment and revenue slump, raising questions about the end of an era for publicly traded chains with disparate holdings.


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