University Of Phoenix Parent Company Discloses Probe

PHOENIX — The nation's largest for-profit college says it is being investigated by the Massachusetts attorney general for possible deceptive practices in its student recruiting and financing.

Phoenix-based Apollo Group disclosed the probe of its University of Phoenix subsidiary in a Monday filing with the U.S. Securities and Exchange Commission.

The filing says it has received a civil demand to produce documents and detailed information and give testimony about a broad range of its business activities dating back to 2002.

The company says it believes Massachusetts is working with a coalition of several states to investigate recruiting and financing practices at for-profit colleges. The company says it is evaluating the demand.

Apollo Group stock fell 88 cents to $41.71 in Monday's regular session. The stock lost another 20 cents after hours.

Comments

[sukiconn1234]

09:30 AM on 06/23/2011

Cohen Placitella & Roth P.C. of Red Bank NJ and Philadelphia PA is investigating claims on behalf of students who may have suffered damages as a result of For Profit “schools” engaging in improper and deceptive recruiting and financial aid lending practices. For more information visit http://www.newjerseyconsumerprotection.com.

[SassyScribe]

06:56 AM on 05/18/2011

University of Phoenix should be investigated! Their recruiting practices are beyond shady...but when I wanted to fight them the State of MD said no...now they need to see this! They misappropriated my funds and then had the the nerve to say it was because I didn't meet their qualifications to receive them...they are shady....!

[susankhbelen]

01:20 AM on 05/18/2011

Advice: Find yourself some disgruntled profs. There are plenty of them out there.

Many of these for-profit schools change grades because the students are paying a high price and expect As.

[Left Hook]

11:55 PM on 05/17/2011

What does Phoenix U have in common with "BECK U!"?? They both screw their "students" by promising an education but giving them phoney courses...

[ScaredAcademic]

11:43 PM on 05/17/2011

I can't help but think when you enter into a joint venture with the Carlyle Group (as Apollo has), you are begging for scrutiny now that there is no Bush in the White House.

[oralborealus1]

09:07 PM on 05/17/2011

I hope to Hell that the Federal Gov't steps in and shuts this University of Rip-off down and puts it's lying cheating "directors" in Prison forever!! To many people have had their Pell grants Stolen and Misappropriated by them. I personally know someone who was bilked by them!!
Alex!

[SassyScribe]

06:58 AM on 05/18/2011

The same happened to me and I ended not only paying back my student loans but UOP...they went from $700/class in 2001 to $1100/class in 2004! Crazy! For this BS degree I have!!!!

[claudiam]

06:22 PM on 05/17/2011

Leave it to Arizona. Ugh - I think it will be a long time before we regain any credibility that we may once have had. claudiatucsonaz

[Crystal Macmillan]

04:53 PM on 05/17/2011

I think there needs to be more anger directed towards for profits, it's a fundamentally immoral to place such a burden as debt on students, when employment is not ensured and these schools act in such a predatory manner. Join the battle here on facebook: http://www.facebook.com/pages/Protest-Student-Loan-Debt/131006660302395

[ScaredAcademic]

11:33 PM on 05/17/2011

The only people who should be profiting from a university education are the students for the rest of their lives.

[Kathy Ritz]

01:32 PM on 05/17/2011

The really scary thing about these "schools" is: they hard sell new students into massive amounts of student loan debt for degrees and certificates that would cost 30 to 50% less than the same program at a state or community college. Then when the student graduates and begins working in his/her field of study at an entry level salary of $20,000 - $30,000 p/yr they have to pay back $20,000 or more in student loans.

[Just a passerby]

06:43 PM on 05/17/2011

And that's assuming they can get jobs. In many cases the quality of education is so poor at these diploma mills that potential employers won't even interview graduates.

[rep suck]

08:14 PM on 05/17/2011

Yep very true. You have just scratched the surface, while for some people the system will work pretty well but there is most definitely a dark side to student loans and financial aid. I have first hand experience unfortunately. The schools can't survive unless they sign up people. The admissions people are just car salesmen, they will tell you what ever you want to hear just as long as sign the papers. At least when you get shafted by the car dealer you at least have something to show for it and something you can use, not the case with these schools your stuck. Hopefully now since the Dept. of Ed I think it was did a sting on about a dozen schools across the country and showed just how bad it is, every school failed. Maybe something can be done about it, nothing gets you happy to pay your bills when one or two of the bills are a major thorn in the side from which nothing good comes from it and you have no recourse at all and in which you got nothing for it but lie's and misinformation. The Government needs to pay a lot more attention what is and is not going on at these schools and do a full on in depth investigation, I for one am REALLY getting tired of being lied to and ripped off and no one gives a damn.

[Ish Kabibble]

10:12 AM on 05/17/2011

What Republican family controls Apollo Group? They sure knew how to take advantae of the loopholes that Reagan put into the student loan laws. They have been PRINTING money!

[Julia Bailey]

09:43 AM on 05/17/2011

The school is a joke. Anyone can get in, and if you pay enough you get a degree. They do 'group projects' so they don't have to fail anyone. And the level of academics is about the level of high school, not at all university level.
No one takes degrees from the U of Phoenix seriously, its a waste of money.

[forkuu]

10:06 PM on 05/17/2011

you are right on target. the school is for losers.. the education poor at best and lures students who could not do college level work..
sady these same students may be out there getting jobs and depending on others when they dont have a clue. they will probably not read this either lol

[paid troll]

09:24 AM on 05/17/2011

"evaluating the demand"? i didn't know that was an option. oh wait, it wouldn't be an option for you or me, only the "upper class" of corporations.