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.
The Department of Veterans Affairs has vowed to increase scrutiny of unaccredited schools that received federal funds through the GI Bill and to review state criteria that allow the financial benefit for such schools.
Fort Campbell officials declined to immediately release public documents related to an agreement between the U.S. Army base in Kentucky and the for-profit college for a recruiting event last year.
The Defense Department has confirmed that it is reviewing whether recruitment practices by the University of Phoenix, the country’s largest benefactor of GI Bill funds, comply with federal law.
PBS NewsHour showcases Reveal reporter Aaron Glantz’s investigation into how the University of Phoenix – the school that receives the largest share of GI Bill money – has sidestepped an executive order banning deceptive and aggressive recruiting practices by for-profit colleges.
Eight U.S. senators are demanding that the Department of Veterans Affairs launch an inquiry into revelations that GI Bill tuition subsidies have flowed to questionable unaccredited schools.
The GI Bill does not require schools to be accredited. The loophole is meant to allow veterans to attend trade schools, but Reveal has found 2,000 schools cashing in, including ones that teach scuba diving, dog grooming and yoga.
In 2012, President Barack Obama banned deceptive and aggressive recruiting tactics by for-profit colleges, so the University of Phoenix instead sponsors events at military bases to woo veterans – and their GI Bill money – to its educational programs.