Investors claim the school hid the fact that millions of dollars in revenue for the for-profit college came from a sophisticated – and prohibited – strategy of targeting veterans.
This past year has been an important – and wild – one for us at Reveal and The Center for Investigative Reporting. Here’s a rundown of some of the dust we’ve kicked up, the changes we’ve spurred and the conversations we’ve started in 2015.
Using Veterans Day as a backdrop, the Obama administration announced its support for a bill that seeks to rein in for-profit schools that prey on veterans and military personnel eligible for the GI Bill and military tuition assistance programs.
Sen. John McCain stood by the University of Phoenix after the Defense Department put it on probation, claiming that the move was orchestrated by a lawmaker who has a record of not supporting the military. But the Arizona senator has been criticized for his own actions on veterans issues.
Veterans groups and U.S. Sen. Dick Durbin, who have pressed for wider inquiries into for-profit schools, are defending the Defense Department’s decision to withhold new tuition assistance money from the University of Phoenix because of violations of military rules.
The Defense Department is reviewing a response from the University of Phoenix to the military’s decision to ban its recruiters from military facilities and suspend it from enrolling more military personnel under the tuition assistance program, even as Republican senators came to the for-profit school’s defense.
Executives of the parent company of the University of Phoenix attempted to regain investor confidence this morning amid plummeting stock prices and ongoing scrutiny from state and federal officials investigating the for-profit school’s recruiting practices.
Veterans groups are urging the U.S. Department of Veterans Affairs to follow the Defense Department’s lead in stemming the flow of federal education funds to the University of Phoenix.
The Department of Defense said it would suspend the University of Phoenix from federal tuition assistance programs and bar school officials from recruiting at military facilities after revelations of improper recruiting and marketing practices by the for-profit school.