The most trusted and popular consumer complaints website
Explore your opportunities! Create an account or Sign In

University of Phoenix / corrupt, scam, criminal (crap) "school"

1 Phoenix, AZ, United States

University of Phoenix Sanctioned by the Government - The university was found by the GAO to have prioritized financial success over student outcomes, with low spending in instruction per student and a 66 percent withdrawal rate among students in associate degree programs. In November 2009, the University of Phoenix’s parent company, resolved a 2004 U.S. Department of Education investigation by settling for $10 million. Regulators accused the university of making recruiter pay dependent on enrollment numbers. The Apollo group settled for $78.5 million when a whistle-blower made allegations of enrollment-based recruiter incentives. In October 2010, the University of Phoenix lost a $10 million lawsuit with the Oregon Attorney General for poor financial practices. The lawsuit charged that University of Phoenix misled investors, and failed to follow federal student loan protocol, which in some cases led to improperly canceled student loans. In 2013, it was sanctioned by the Higher Learning Commission, due to concerns regarding student assessment, governance and faculty scholarship and research for the school’s doctoral programs. Under this sanction, the university got to keep its accreditation, but had to submit reports to the agency on a regular basis. As of May 2015, the university’s parent company, Apollo Education Group Inc. was the subject of at least two investigations by state attorneys general. In July 2015, the FTC announced that it had issued Apollo a “Civil Investigative Demand, ” and would be looking into the use of potential deceptive advertising, sale or marketing of Apollo’s services to students.

University of Phoenix was (IS) the subject of an Education Department audit, which revealed that the school overcharged lenders and this department by over a half million dollars. University of Phoenix spends an unusually high portion of revenue on marketing and a relatively small amount on instruction (for its exclusively online program). Most instructors are part-time and accreditation could be an issue in the near future. University of Phoenix appears to maintain aggressive enrollment goals for the more than 300 recruiters it employs. Many former students of University of Phoenix have been plagued with high debt to income ratios after taking out student loans from this for-profit university. University of Phoenix was recently questioned for having a high withdrawal rate amongst students in its programs and for spending an unusually high percentage of revenue on marketing and its aggressive, untruthful recruiting tactics.

University of Phoenix Class Action Lawsuit [protected]: The University of Phoenix is being sued and may be “shut down”, by court order! Three former students who withdrew from the university filed the lawsuit out of Arkansas, whereas the students claimed that the University of Phoenix sought tuition payments directly from the students after they withdrew instead of deducting the payments directly from the students' loans. The students withdrew because the quality of education they received from the University of Phoenix was extremely poor, the instructors would not help them, and some instructors went missing for a few days in the online classrooms.

Three former students who withdrew from the University of Phoenix filed the lawsuit out of Arkansas, whereas the students claimed that the University of Phoenix sought tuition payments directly from the students after they withdrew instead of deducting the payments directly from the students' loans. The students withdrew because the quality of education they received from the University of Phoenix was extremely poor, the instructors would not help them, and some instructors went missing for a few days in the online classrooms.

University of Phoenix is well known as one of the largest for-profit colleges in the US, and may also be among the most predatory. University of Phoenix has a long history of lawsuits for its’ deceptive practices. The “school” was recently being sold, leaving students out in the dark. The university has paid several government fines and settled whistle-blower lawsuits concerning its admissions practices and education programs. In 2000, the federal government fined the university $6 million for including study-group meetings as instructional hours. In 2002, the Department of Education relaxed requirements on instructional hours.

In 2014 the US Dept of Education’s Office of the Inspector General demanded records from the University of Phoenix and its parent company Apollo Group going back to 2007 “related to marketing, recruitment, enrollment, financial aid, fraud prevention, [and] student retention.

  • Updated by John Bass, Aug 26, 2017

    Arizona Commission for Postsecondary Education
    2020 N. Central Ave., Suite 650
    Phoenix, AZ 85004
    TEL: 602.258.2435
    FAX: 602.258.2483
    https://highered.az.gov/

    FILE your “COMPLAINT” with the Arizona Attorney General at:
    https://www.azag.gov/

    FILE your “COMPLAINT” with the Department of Justice at:
    https://www.justice.gov

    FILE your “COMPLAINT” with the Federal Trade Commission at:
    https://www.ftc.gov

    FILE your “COMPLAINT” with the Consumer Financial Protection Bureau at:
    https://www.consumerfinance.gov

    FILE your “COMPLAINT” with the U.S. Government Accountability Office at:
    https://www.gao.gov

Jo
Aug 26, 2017

Post your comment