Homeless in Arizona

80 percent of the revenue of the University of Phoenix comes from government welfare programs

"federal financial aid ... represents more than 80 percent of the revenue for the parent Apollo Group"

While University of Phoenix founder John Sperling is a good guy for donating millions to help legalize marijuana he certainly isn't a Libertarian when it comes to receiving corporate welfare from the Federal government if 80 percent of his income comes from Federal aid.

Source

University of Phoenix keeps accreditation

By Ronald J. Hansen The Republic | azcentral.com Wed Jul 10, 2013 4:52 PM

The University of Phoenix and a sister school had their accreditation extended another 10 years on Wednesday, though each was sanctioned over conditions that must improve over the next two years to avoid falling out of compliance.

The Higher Learning Commission, a Chicago-based nonprofit regional accrediting agency, granted the conditional approval that ensures students at the for-profit schools can continue to qualify for federal financial aid, which represents more than 80 percent of the revenue for the parent Apollo Group.

The HLC also reaffirmed its accreditation for Western International University, another holding of the Apollo Group. The University of Phoenix, the nation’s largest for-profit school, and others in its industry have faced withering scrutiny in recent years over concerns that students are often saddled with high debt and poor job prospects.

Reflecting those concerns, the HLC tied the accreditation for both schools to several areas where they must demonstrate improvement in the next two years. Among the concerns, the universities must show sufficient independence from Apollo. Also, they must improve assessments of whether students are learning class goals and show more robust scholarship among faculty and doctoral students.

Apollo welcomed the accreditation, which was one problem weighing down its stock price in recent months.

“This is probably something that investors can see and now check the box and put aside,” said Mark Brenner, chief of staff to the CEO of the Phoenix-based Apollo Group.

“To be reaffirmed for 10 years, which is the maximum, speaks for itself,” said Ryan Rauzon, a spokesman for the company. He characterized the latest periodic review by the HLC as especially thorough, something that should give students confidence in the future of the school.

Even so, the conditional nature could be used by competitors to continue chipping away at the Phoenix-based company’s bottom line.

“We expect the sanction to have some adverse effect on enrollments as competitors will be likely to bring the matter to the attention of prospective students,” said Trace A. Urdan, a senior analyst who tracks the company for Wells Fargo Securities. “However, the effect should be somewhat less damaging than if the university had been placed on probation. We are confident that the university will be able to take measures to demonstrate independence and would expect it to attempt to appeal to the HLC to consider the matter sooner than December 2014.”

In a filing with the Securities and Exchange Commission, Apollo acknowledged the sanction against the University of Phoenix “could adversely impact our business.”

Urdan said the more pressing concern for Apollo is its dwindling enrollment and growing competition from other schools that are often more affordable.

Apollo’s stock closed Wednesday at $17.89 per share, up 34 cents and was rising in early after-hour trading. Over the past year, the stock has fallen more than 50 percent