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Criticism

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Quality of education:

  • There have been concerns that UPX does not properly balance value to students and profits to shareholders,[1] though UPX claims that standardized testing in reading, writing, and mathematical skills for UPX students show that they improve at a better rate on average than for students at most other schools.[2]
  • By the United States Department of Education graduation standards the UPX rate is only 16%. Compared to the national average of 55% it is among the nation's lowest. UPX and some education experts assert that the federal standard is antiquated because it only measures first time students with no previous college credit[3] and uses measurements that skew against economically disadvantaged and minority students.[4] The university response claims that the federal standard only applies to 7% of the total UPX student community[5] and publishes its own nonstandard graduation rate of 59% to account for its overwhelming population of non-traditional students.[6]

Legal issues:

  • A 2003 federal whistle-blower/false claims lawsuit accuses UPX of fraud in obtaining hundreds of millions of dollars in financial aid. It is set for trial in September 2009.[13][1][6][14][15] The school counters that the lawsuit is a legal manipulation by two former UPX employees over a matter previously resolved with the U.S. Department of Education.[16]
  • The university has had various labor and government regulatory related issues. It paid $3.5 million to settle alleged violation of overtime compensation provision with the Department of Labor.[17][18] It is presently being sued by the Equal Employment Opportunity Commission for alleged religious discrimination favoring Mormon enrollment counselors.[19] It settled allegations by the United States Department of Education for $6 million in March 2000 because government auditors noted that the teaching schedule fell short of the minimum time required to qualify for financial aid.[20][6][1] The United States Department of Education also ordered the university to pay $650,000 for failing to promptly refund loans and grants for students who withdrew.[1]
  1. ^ a b c d Dealing in Diplomas, For the University of Phoenix, college is a big business - and getting bigger, The Dallas Morning News, February 28, 2004 by Katherine Yung
  2. ^ U. of Phoenix Says Test Scores Vindicate Its Academic Model, Chronicle of Higher Education, BLUMENSTYK June 13, 2008
  3. ^ Underserved Students Make Progress at For-profit Institutions Diverse; Issues in Higher Education, June 9, 2008
  4. ^ Distorted Statistics on Graduation Rates The Chronicle of Higher Education (reprinted at Susan Ohanian.org, July 6, 2007, by Paul Attewell and David E. Lavin, professors of sociology at the Graduate Center of the City University of New York.
  5. ^ National Association of Student Aid Administrators website, University of Phoenix Responds to New York Times Article
  6. ^ a b c Cite error: The named reference Dillon021107 was invoked but never defined (see the help page).
  7. ^ EEOC Settles Claim with University of Phoenix, Associated Press, August 29, 2007
  8. ^ Student-recruitment Tactics at University of Phoenix Blasted by Feds Univ. of Phoenix Audit Leads to $9.8 mil Fine The Arizona Republic, September 14, 2004, by Dawn Gilbertson
  9. ^ University of Phoenix Receives Record Fine Austin Business Journal, September 14, 2004]
  10. ^ U. of Phoenix Uses Pressure in Recruiting, Report Says - Institution disputes charges that it pumps up enrollment through illegal tactics, Chronicle of Higher Education, by Goldie Blumenstyk, October 8, 2004
  11. ^ US DOE Program Review Report
  12. ^ US DOE and U. of Phoenix Settlement Agreement
  13. ^ University of Phoenix fraud case goes forwardL.A. Times, August 21, 2007
  14. ^ List of Court Documents Related to False Claims Suit
  15. ^ Lisa M. Krieger Lawsuit: University of Phoenix breached ethics, laws, San Jose Mercury , Jun 23, 2007.
  16. ^ United States of America ex rel. Hendow v. University of Phoenix Apollo Group Legal Information Center, accessed July 18, 2008
  17. ^ University of Phoenix, Dept. of Labor Reach Overtime Agreement The Phoenix Business Journal, July 23, 2004
  18. ^ Apollo to pay Department of Labor $2M-$3M to Settle Case Austin Business Journal, July 17, 2004.
  19. ^ Worker Bias Suit Targets University of Phoenix-School Favors Mormons, EEOC says September 28, 2006, by Dawn Gilbertson
  20. ^ University of Phoenix Reaches $6M Settlement The Business Journal of Phoenix, March 28, 2000