In 2004, the Department of Education alleged that UoPX violated Higher Education Act provisions that prohibit financial incentives to admission representatives, and pressured its recruiters to enroll students.
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The university's parent company settled by paying the government $67.5 million, plus $11 million in legal fees, without admitting any wrongdoing. Ī 2003 lawsuit filed by two former university recruiters alleged that the school improperly obtained hundreds of millions of dollars in financial aid by paying its admission counselors based on the number of students they enrolled, a violation of the Higher Education Act. In 2002, the Department of Education relaxed requirements on instructional hours. In 2000, the federal government fined the university $6 million for including study-group meetings as instructional hours. In 2007, The New York Times reported that the school's graduation rate had plummeted and that educational quality had eroded. In 2004, Murphy thought that "the University of Phoenix abandoned its founding mission of solely serving working adult learners to admit virtually anyone with a high school diploma or GED." In terms of revenue, UoPX began to rely less on corporate assistance and more on government funding. Senator Tom Harkin, who chaired hearings on for-profit colleges, said, "I think what really turned this company is when they started going to Wall Street." The sentiment was echoed by Murphy in his book Mission Forsaken: The University of Phoenix Affair with Wall Street. Its enrollment exceeded 100,000 students by 1999. In 1994, UoPX leaders made the parent company, Apollo Group, public. Academic labor underwent a process of unbundling, in which "various components of the traditional faculty role (e.g., curriculum design) are divided among different entities, while others (e.g., research) are eliminated altogether". Much of UoPX's revenue came from employers who were subsidizing the higher education of their managers.
In 1980, it expanded to San Jose, California, and launched its online program in 1989. University of Phoenix was founded in 1976 by John Sperling and John D. History Foundation and rapid growth (1970s–2000s) The school is owned by Apollo Global Management and Vistria Group, two US private-equity firms, but is in the process of being sold to the nonprofit University of Idaho. It is institutionally accredited by the Higher Learning Commission and has an open enrollment admissions policy for many undergraduate programs. Founded in 1976, the university confers certificates and degrees at the certificate, associate, bachelor's, master's, and doctoral degree levels. University of Phoenix ( UoPX) is a private for-profit university headquartered in Phoenix, Arizona.
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