Tuition Assistance Suspended For University of Phoenix

“On October 7, 2015, our wholly-owned subsidiary, University of Phoenix, Inc., was notified by the U.S. Department of Defense (“DoD”) that the University had been placed on probationary status in respect of its participation in the DoD Tuition Assistance Program for active duty military personnel, and that the DoD is considering whether to terminate the DoD Voluntary Education Partnership Memorandum of Understanding with the University (“DoD MOU”) which is the basis on which the University’s active duty military students participate in the DoD Tuition Assistance Program”.

A Pentagon spokesman confirmed the probationary status Friday in a statement to Law360. The action does not apply to current students using the program’s funds.

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But the school, along with other for-profit colleges, have been in the spotlight for many years, and have been criticized for deceptive marketing practices. Military members who are enrolled in the university’s courses can continue to receive tuition assistance, but new enrollees and transfers will not be allowed. “DoD has taken no sanctions against them while the investigations were ongoing”, he said. Since the collapse of Corinthian Colleges, Incorporated, the for-profit college industry is experiencing a long overdue reckoning as state and federal investigations and lawsuits against the largest companies continue to accumulate.

He said the university will fight the decision, but will comply with the DoD.

The University of Phoenix is, by far, the most popular school among users of the Post-9/11 GI Bill, which is overseen by VA. In fiscal 2014, more than 49,000 GI Bill students attended the school’s various campuses, at a cost of a few $344.5 million, according to VA data.

Durbin added that he would ask other government agencies, including the Veterans Affairs Department, to consider taking similar steps with the University of Phoenix. “No charges have been made in connection with these investigations”, Apollo wrote in its filing for investors.

It also cites investigations and reviews of Phoenix that are being conducted by the state attorney general of California and the Federal Trade Commission. The Department of Defense in its letter acknowledged the corrective actions taken by the University to date.

“University representatives had been working closely with Department of Defense leaders and we all expected a different response”, said University President Tim Slottow in a statement.

Dawn Bilodeau, the chief of the Defense Department’s voluntary education program, told Reveal in a written statement that University of Phoenix “will not be authorized access to DoD installations for the purposes of participating in any recruitment-type activities, including but not limited to job training, and career events and fairs”. And Apollo said it has discussed the issue of approval for events at military bases with the Defense Department and noted all previous events had been approved by base officials.

This story was edited by Amy Pyle and copy edited by Nikki Frick.