It’s increasingly clear that a for-profit approach to marketing and online “delivery” of education is not a suitable model for the University of Akron to emulate.
Here are some excerpts from a story hosted on the MSN Money web site.
Slick for-profit college marketing is starting to backfire
by Danielle Douglas-Gabriel of The Washington Post
“On Wednesday, the Apollo Education Group revealed that its subsidiary the University of Phoenix is being investigated by the Federal Trade Commission for deceptive advertising and marketing. The school is the largest recipient of federal student aid for veterans, taking in nearly $1.2 billion in GI Bill benefits since 2009. Apollo said in a public filing that regulators are asking for information about the school’s military recruitment, enrollment and student retention, among other things.
The company declined further comment on the investigation. Calls to the FTC for comment were not immediately returned.
“I wish I could say I am surprised that the FTC is investigating the University of Phoenix for unfair and deceptive practices,” said Sen. Dick Durbin (D-Ill.). “But these allegations are all too familiar when it comes to the for-profit college industry.”……..
“……..Government lawsuits, regulatory scrutiny and depressed student enrollment have kneecapped some big names in the sector. Education Management Corp. is closing 15 Art Institute campuses, while Career Education Corp. said it would shut down all 14 of its Sanford-Brown schools. Meanwhile, ITT Education Services, its chief executive, Kevin Modany, and chief financial officer, Daniel Fitzpatrick, are all being sued by the Securities and Exchange Commission for fraud.”
Read the entire story HERE.