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Struggling University of Phoenix Lays Off 900
An anonymous reader writes: The struggles facing for-profit colleges continue. The University of Phoenix announced poor quarterly earnings yesterday, and the institution has laid off 900 workers since September. Enrollment is down 14% since last year, and the CEO of its parent company, Apollo Education Group, says enrollment is likely to drop from 206,000 to about 150,000 next year. Apollo's stock has lost more than half its value since the beginning of the year. "Tighter regulations on for-profits and the Obama administration's push to make community college free top the list of headwinds. And non-profit universities have entered the online education space, where for-profit schools once held center stage."
These private collages, such as university of phoenix, result in 90% of the student loan defaults while they service less than 10% of students. That staggering percentage is why the Government is going after these institutions. There are MANY private schools that aren't targeted because they don't have these problems.
Private for-profit colleges are welcome to continue to operate in any way or form without getting government hand-outs in form of grants and guaranteed loans. The problem administration is addressing is that of outcomes, and it is equally applicable to any type of college. If the job prospects and earning potential of graduates falls below certain cutoff, then the program is no longer eligible for the taxpayer subsidies. It just happen that 99% of such programs are in for-profit institutions. Why? Because in order to maximize profits, these for profit institutions maximized enrollment and reduced the minimum level of academic accomplishments to gain a degree. This also reduced the value of such degree in the job market.
it seems like, since UofP started, a lot more Unis have upped their game for online-classes to get their standard degree.
I hate to spam, but here is something you need to look at if you're looking to get an accredited online degree: www.wgu.edu. Western Governors University is affordable: $3000 per 6 month term, where you can do as many credits as you can. I got my MSc in 18 months, for 9k. Everything was online, except graduation, which was a big party in Utah.
5 Stars, strongly recommend.
I'm not a complete idiot... Some parts are missing.