University of Phoenix

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The University of Phoenix (UoPX) is a private for-profit university headquartered in Phoenix, Arizona.Template:Efn Founded in 1976, the university confers certificates and degrees at the certificate, associate, bachelor's, master's, and doctoral degree levels. It is institutionally accredited by the Higher Learning Commission<ref>Template:Cite web</ref> and has an open enrollment admissions policy for many undergraduate programs.<ref>Template:Cite web</ref> The school is owned by Phoenix Education Partners.<ref name=PEP/>

History

Foundation and rapid growth (1970s–2000s)

The University of Phoenix was founded in 1976 by John Sperling and John D. Murphy.<ref>Template:Cite web</ref><ref>The Story of the University of Phoenix American Public Media. Retrieved 4 August 2020.</ref> In 1980, it expanded to San Jose, California, and launched its online program in 1989.<ref>Template:Cite web</ref> Much of UoPX's revenue came from employers who were subsidizing the higher education of their managers. Academic labor underwent a process of unbundling, in which "various components of the traditional faculty role (e.g., curriculum design) are divided among different entities, while others (e.g., research) are eliminated altogether".<ref>Template:Cite web</ref>

In 1994, UoPX leaders made the parent company, Apollo Group, public. Its enrollment exceeded 100,000 students by 1999.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Senator Tom Harkin, who chaired hearings on for-profit colleges, said, "I think what really turned this company is when they started going to Wall Street."<ref name=Hanford07142016>Template:Cite web</ref> The sentiment was echoed by Murphy in his book Mission Forsaken: The University of Phoenix Affair with Wall Street. In 2004, Murphy thought that "the University of Phoenix abandoned its founding mission of solely serving working adult learners to admit virtually anyone with a high school diploma or GED." In terms of revenue, UoPX began to rely less on corporate assistance and more on government funding.<ref name=Murphy>Template:Cite book</ref> In 2007, The New York Times reported that the school's graduation rate had plummeted and that educational quality had eroded.<ref>Template:Cite news</ref>

In 2000, the federal government fined the university $6 million for including study-group meetings as instructional hours. In 2002, the Department of Education relaxed requirements on instructional hours.<ref name=Dillon021107 /><ref name="6mil">Template:Cite news</ref>

A 2003 lawsuit filed by two former university recruiters alleged that the school improperly obtained hundreds of millions of dollars in financial aid by paying its admission counselors based on the number of students they enrolled, a violation of the Higher Education Act.<ref name=Dillon021107 /> The university's parent company settled by paying the government $67.5 million, plus $11 million in legal fees, without admitting any wrongdoing.<ref name="talks">Template:Cite web</ref><ref>Template:Cite news</ref>

In 2004, the Department of Education alleged that UoPX violated Higher Education Act provisions that prohibit financial incentives to admission representatives, and pressured its recruiters to enroll students.<ref>Template:Cite web</ref> UoPX disputed the findings but paid a $9.8 million fine as part of a settlement where it admitted no wrongdoing and was not required to return any financial aid funds.<ref name="finaid" /><ref name="apollo14">"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</ref><ref name="daily19">"University of Phoenix Receives Record Fine" Austin Business Journal, September 14, 2004</ref> The university also paid $3.5 million to the Department of Labor to settle a violation of overtime compensation regarding hours worked by UoPX's recruiters.<ref>"University of Phoenix, Dept. of Labor Reach Overtime Agreement" Phoenix Business Journal, July 23, 2004</ref><ref>"Apollo to pay Department of Labor $2M-$3M to Settle Case" Austin Business Journal, July 17, 2004.</ref> UoPX settled a false claims suit for $78.5 million in 2009 over its recruiter-pay practices.<ref name="falseclaims">Template:Cite news</ref>

File:University of Phoenix Building 2025.png
A physical location of the University of Phoenix.

In 2008, Pereira O'Dell became the lead ad agency for UoPX for a reported $220 million.<ref>Template:Cite web</ref> During the 2008–2009 fiscal year, the UoPX student body received more Pell Grant money ($656.9 million) than any other university<ref>Template:Cite web</ref> and was the top recipient of student financial aid funds, receiving almost $2.48 billion.<ref>Top 100 Recipients of Federal Assistance for FY 2008 Template:Webarchive, Usaspending.gov, US government</ref> The university's graduation rate was 17 percent, according to federal data that measures first-time, full-time (FTFT) undergraduate students who complete their programs at 150% of the normal time.<ref>Template:Cite web</ref> The University of Phoenix has been the largest recipient of federal G.I. Bill tuition benefits<ref name="auto2">Template:Cite web</ref> and the largest for-profit recipient by Pell Grant assistance funding.<ref name="Distribution">Template:Cite web</ref>

In 2009, the Department of Education produced a report claiming the untimely return of unearned Title IV funds for more than 10 percent of sampled students. The report also expressed concern that some students register and begin attending classes before completely understanding the implications of enrollment, including their eligibility for student financial aid. In January 2010, the parent company Apollo Group was required to post a letter of credit for $125 million by January 30 of the same year.<ref name="bweek_late_aid">Template:Cite web</ref> In 2010, UoPX came under government scrutiny after its Phoenix and Philadelphia campuses were found to have engaged in deceptive enrollment practices and fraudulent solicitation of FAFSA funds.<ref name=Bloomberg080416>Template:Cite news</ref>

Enrollment decline, transition to online courses (2010s)

In 2010, UoPX claimed a peak enrollment of more than 470,000 students with a revenue of $4.95 billion.<ref>Template:Cite web</ref> A 2010 report found that its online graduation rate at the time was only five percent.<ref>Template:Cite news</ref> Later in the year, the university paid $154.5 million for 20-year naming rights for advertising purposes of the University of Phoenix Stadium in Glendale, Arizona. The company terminated the naming rights deal on April 11, 2017,<ref>Template:Cite web</ref> and on September 4, 2018, the stadium's naming rights were acquired by State Farm.<ref>Template:Cite web</ref>

File:University of Phoenix Stadium aerial.jpg
State Farm Stadium, formerly University of Phoenix Stadium, a sports stadium in Glendale, Arizona for which the corporation owned naming rights from 2006 to 2018.

In August 2010, an ABC News investigation identified a UoPX recruiter who sought new students from Y-Haven, a homeless shelter in Cleveland, Ohio. Another University of Phoenix recruiter falsely claimed to an undercover television producer taking part in an investigation of the school that the university's Bachelor of Science in Education degree would be sufficient to qualify them to teach in Texas or New York.<ref>Template:Cite web</ref>

In a December 2010 Bloomberg article, former UoPX senior vice president Robert W. Tucker noted that "at critical junctures, [co-founder] John [Sperling] chose growth over academic integrity, which ultimately diminished a powerful educational model".<ref>Template:Cite news</ref> At its peak, UoPX operated more than 500 campuses and learning sites.<ref>Template:Cite web</ref> The university began to focus on opening new resource centers for online students to provide spaces for alumni to network and current students to seek assistance from professors and peers.<ref>Template:Cite newsTemplate:Subscription required</ref>

In August 2011, Apollo Group announced it would buy 100% of Carnegie Learning to accelerate its efforts to incorporate adaptive learning into its academic platform.<ref>Gabriel, Trip (August 2, 2011). "Apollo Group to Buy Maker of Math Courses". The New York Times.</ref> Controversies concerned its marketing and recruitment practices, instructional hours, its status as one of the top recipients of student aid, and a student body carrying the most student debt of any college.<ref name="USAToday07022013">Template:Cite news</ref>

In 2013, the Department of Defense ended its contract with the University of Phoenix for military bases in Europe.<ref>Template:Cite web</ref> U.S. military commanders at Fort Campbell, Kentucky, allowed UoPX representatives to advertise and place promotional materials in high-traffic areas. Access was provided in exchange for the university funding events on army bases, including Easter egg hunts and welcome briefings for newly assigned soldiers.<ref>Template:Cite web</ref>

Murphy wrote in Mission Forsaken (2013) about the school's degeneration from a provider of working adult continuing education programs to a money making machine whose sole criterion for admission was eligibility for federally funded student loans.<ref name=Murphy/><ref>Template:Cite web</ref>

In May 2013, the university's accreditation status was placed on "notice" for a period of two years (with allowed retention of their regional accreditation) by the HLC, due to "insufficient autonomy relative to its parent corporation". The HLC Institutional Actions Council First Committee (IACFC) concerns centered on the university's governance, student assessment, and faculty scholarship in relation to Ph.D. programs.<ref>Template:Cite news</ref> In June 2015, the HLC determined that the University of Phoenix had resolved those concerns.<ref>Template:Cite news</ref>

In 2014 the Department of Education's Office of the Inspector General demanded records from the school and Apollo Group going back to 2007 "related to marketing, recruitment, enrollment, financial aid, fraud prevention, [and] student retention".<ref name=DOEInvestigation>Template:Cite news</ref> In the same year, Arthur Green, a former UoPX enrollment advisor, sued the school and claimed that it had violated the US False Claims Act. According to Green, he was fired for uncovering billions of dollars in fraud.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Five years later, the case was dismissed in 2019 after the US Department of Justice under William Barr decided not to take the case and the records were sealed.<ref>Template:Cite web</ref>

In 2014, UoPX partnered with 47 historically black colleges and universities to offer UoPX classes that transfer to these institutions.<ref name=CHE11142014>Template:Cite news</ref> 142,500 students enrolled on August 31, 2016,<ref name="sec.gov">Template:Cite web</ref> and 119,938 during the 2016–17 school year.Template:Citation needed During this time, the university continued to spend tens of millions of dollars on marketing and advertising, including $27 million on internet paid search advertising.<ref>Template:Cite web</ref> The Brookings Institution reported that UoPX spent $76 million on advertising in 2017.<ref>Template:Cite web</ref>

From 2009 to 2015, the University of Phoenix received an estimated $1.2 billion of federal money issued through the G.I. Bill. The university enrolled almost 50,000 such students in 2014, twice as many as any other institution.<ref>William M. Arkin and Alexa O'Brien, "The Top 100 Most Militarized Universities in America " Vice News, November 6, 2015</ref>

In October 2015, the Department of Defense suspended the school's ability to recruit on U.S. military bases and receive federal funding for educating members of the U.S. military.<ref>Template:Cite news</ref> After protest from senators John McCain, Jeff Flake, and Lamar Alexander, the suspension was lifted in January 2016.<ref>Template:Cite news</ref><ref>Template:Cite web</ref>

The Federal Trade Commission (FTC) began investigating the university in 2015 in regard to an advertising campaign it ran from 2012 to 2014.<ref>Template:Cite web</ref><ref name=":1">Template:Cite news Note: here is a link to the page 12 segment of the article.</ref> On December 10, 2019, UoPX agreed to pay a settlement of $191 million related to charges that it recruited students using misleading advertisements.<ref name=":1" /> NPR reported the amount included $50 million in cash (which was later distributed as checks to more than 100,000 former students),<ref>Template:Cite web</ref><ref>Template:Cite web</ref> as well as a $141 million cancellation in student debt, though the cancellations "won't affect student borrowers' obligations for federal or private loans".<ref>Template:Cite news</ref> The institution admitted no wrongdoing as part of the settlement, which was at the time the largest FTC settlement against a for-profit school.<ref name=":1" />

In 2015, MarketWatch reported that UoPX students owed more than $35 billion in student loan debt, the most of any US college at the time.<ref name=MW09112015>Template:Cite news</ref>

In 2016, the University of Phoenix partnered with the ASIS Foundation to provide scholarships for students studying for security-related degrees. In March 2016, the first ten scholarship recipients were announced.<ref>Template:Cite web</ref> The University of Phoenix also has community partnerships with Boys and Girls Clubs of America, the American Red Cross, and the Junior League.<ref>Template:Cite web</ref>Template:Self-published inline

In 2016, Apollo Education Group shareholders filed a class-action lawsuit against the corporation, arguing that it withheld information leading to large losses in stock prices. Several of the allegations related to UoPX's recruiting of military personnel and veterans.<ref name="PBJ031816">Template:Cite news</ref><ref name="LomingkitVApollo">Template:Cite court</ref>

Between 2010 and 2016, enrollment declined by more than 70 percent<ref name=Yahoo04072016>Template:Cite news</ref> amid multiple investigations, lawsuits, and controversies.<ref>Lewin, Tamar (August 9, 2011). "Education Management Corporation Accused of Widespread Fraud". The New York Times.</ref><ref name="NYTimes06092016">Template:Cite news</ref><ref name=NYT020816 /><ref>Template:Cite web</ref><ref>Template:Cite web</ref>

Ownership by Apollo Global Management (2016–2025)

In February 2016, Apollo Group announced its sale to a private investment group comprising Apollo Global Management, the Vistria Group, and the Najafi Companies, for $1 billion. Former U.S. Department of Education deputy secretary Anthony W. Miller, partner and chief operating officer of Vistria, became chairman.<ref name=USAToday020816>Template:Cite news</ref> The sale was approved by both the Department of Education and the Higher Learning Commission (HLC).<ref name=NYT020816>Template:Cite news</ref><ref name="Politico 2016">Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> In December 2016, the U.S. Department of Education approved of the sale of Apollo Education Group to Apollo Global Management. The company provided a letter of credit for up to $385 million.<ref>Template:Cite news</ref> In February 2017, after the takeover by Apollo Global Management, UoPX laid off 170 full-time faculty members.<ref>Template:Cite news</ref> According to the 2019 academic report, degreed enrollment was 87,400.<ref>Template:Cite web</ref>

In March 2020, the U.S. Department of Veterans Affairs (VA) announced that they had suspended certification for G.I. Bill funds for new students at UoPX, citing a history of deceptive recruiting practices.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The VA withdrew its threat of sanctions in July 2020.<ref>Template:Cite news</ref> The same year, UoPX received $6.5 million in CARES Act funding<ref>Template:Cite web</ref> and $7.4 million in the second round of COVID-19 relief funds.<ref>Template:Cite web</ref> In 2020, UoPX began experimenting with micro-campuses, giving the centers a "WeWork vibe".<ref>Template:Cite web</ref>

In 2021, Bloomberg reported that Apollo's higher education investment had gained about 50 percent in value: from its $634 million initial investment to $956 million.<ref>Template:Cite news</ref> UoPX also received $3.4 million in aid through the American Rescue Plan.<ref>Template:Cite web</ref>

In 2021, UoPX continued to close campuses, including Atlanta and Salt Lake City.<ref>Template:Cite web</ref> The Phoenix, Arizona campus was the only location accepting new in-person students.<ref name="ReferenceA">Template:Cite web</ref> UoPX would later announce that only one campus would remain open in 2025.<ref>Template:Cite web</ref>

In 2019, a class action lawsuit was filed by over 200,000 student borrowers due to allegations of fraud. The University of Phoenix was among 153 institutions named in the case. The lawsuit was supported by the Project on Predatory Student Lending, part of the Legal Services Center at Harvard Law School.<ref>Template:Cite web</ref> A settlement was approved in August 2022, stating that the schools on the list were included because of "substantial misconduct, whether credibly alleged or in some instances proven."<ref>Template:Cite web</ref><ref>Template:Cite news</ref> In April 2023, the Supreme Court rejected a challenge to the settlement and allowed the debt cancellation to proceed.<ref>Template:Cite news</ref>

On September 20, 2023, the Biden administration canceled nearly $37 million of federal student loan debt for more than 1,200 borrowers who were enrolled at the University of Phoenix between September 21, 2012, and December 31, 2014.<ref>Template:Cite web</ref>

In April 2024, the University of Phoenix and California Attorney General Rob Bonta resolved an investigation into UoPX's use of military student recruitment tactics from 2012 through 2015 via settlement, where the university agreed to pay out $4.5 million in penalties and other fees.<ref>Template:Cite web</ref>

Phoenix Education Partners, IPO (2025–present)

On August 29, 2025, AP VIII Queso Holdings LP, the new parent company of the University of Phoenix, filed for an initial public offering. The company announced that its name would change to Phoenix Education Partners Inc. before the closing of the offering. The entity began to be traded under the ticker symbol PXED. Phoenix Education Partners received backing from Apollo Global Management.<ref>Template:Cite news</ref><ref name=PEP>Template:Cite news</ref><ref name=IPOorsale>Template:Cite web</ref>

Prior to its IPO, multiple acquisition proposals were made for the University of Phoenix since 2021,<ref>Template:Cite web</ref> including those by Tuskegee University,<ref>Template:Cite web</ref> UMass Global, the University of Arkansas System,Template:Refn and the University of Idaho.<ref>Template:Cite web</ref> The University of Idaho initially announced a deal worth $685 million to acquire the University of Phoenix in May 2023.Template:Refn Idaho Attorney General Raúl Labrador sued the Idaho State Board of Education, due to alleged violations of Idaho's Open Meetings Law, pausing the acquisition. The lawsuit was first dismissed and later appealed, continuing until the case was eventually dropped due to the decision to abandon the purchase in June 2025.Template:Refn<ref>Template:Cite news</ref> The University of Phoenix reimbursed the University of Idaho for legal fees related to exploring the purchase and paid an additional $15 million to the school for seeking an IPO.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

Through its IPO, Phoenix Education raised $136 million, giving the university a market value of $1.48 billion. The offering was oversubscribed, with demand reaching roughly ten times the supply of available shares. Additionally, Phoenix's IPO was among the last to receive SEC approval prior to the 2025 United States federal government shutdown.<ref>Template:Cite news</ref>

Academics

UoPX has an open admissions policy by which most of its undergraduate programs are accessible to anyone with a high school diploma, GED, or their equivalent. According to the US Department of Education's College Navigator, the current student to teacher ratio at the University of Phoenix is 132 to 1.<ref>Template:Cite web</ref> Additionally, according to the university's 2023 annual academic report, more than 78% of its students are employed while attending the school.<ref name=IPOorsale/>

Prior to 2010, the university recruited students using high-pressure sales tactics, including assertions that classes were filling fast,<ref name="finaid">Template:Cite news</ref> by admissions counselors who are paid, in part, based on their success in recruiting students.<ref name=reason/> The university recruits students and obtains financial aid on their behalf,<ref name=finaid/> such as the Academic Competitiveness Grant, Federal Pell Grant, National Science & Mathematics Access to Retain Talent Grant (National SMART Grant), Federal Direct Student Loan Program, Federal Supplemental Educational Opportunity Grant, Federal Direct PLUS Loans, Federal Perkins Loan, and the Wounded Warrior Project.<ref>Template:Cite web</ref> In the 2017–18 award year, 51,990 UoPX received the Federal Pell Grant.<ref>Template:Cite web</ref>

Besides postsecondary degree-level programs, the school offers continuing education courses for teachers and practitioners, professional development courses for companies, and specialized courses of study for military personnel.<ref>Template:Cite web</ref> Students spend 20 to 24 hours with an instructor during each course, and are required to collaborate on learning team projects.<ref>Template:Cite web</ref>

Students have access to class-specific online resources, which include an electronic library of textbooks and other course materials. Some academics and former students argue the abbreviated courses and the use of learning teams result in an inferior education.<ref name=Dillon021107>Dillon, Sam (February 11, 2007). "Troubles Grow for a University Built on Profits". The New York Times, February 11, 2007.</ref><ref name="reason">Template:Cite web</ref> UoPX has been criticized for lack of academic rigor; Henry M. Levin called its business degree an "MBA Lite", saying "I've looked at [its] course materials. It's a very low level of instruction."<ref name=Dillon021107/> The university's "corporate articulation agreements" provide an alternative assessment program for people working at other companies to earn college credit for training they have completed at their jobs. To qualify for college credit, students either write an "experiential essay" or create a professional training portfolio,<ref name=":0">Template:Cite web</ref> the latter of which is a collection of documents such as transcripts from other schools, certificates, licenses, workshops or seminars.<ref>Template:Cite web</ref>

The University of Phoenix has been regionally accredited since 1978 by the HLC.<ref>Template:Cite web</ref> UoPX has 18 programs with business, healthcare, nursing, counseling and education having programmatic or specialized accreditation. Some individual colleges within the University of Phoenix hold specialty accreditation or are pre-accredited by accrediting agencies that are recognized by the Council for Higher Education Accreditation.

Student demographics

According to the College Scorecard, the University of Phoenix student body's ethnic composition is 39 percent unknown, 26 percent white, 20 percent black, 11 percent Hispanic, 2 percent multiracial, with 1 percent each for Asian, American Indian/Alaska Native and Native Hawaiian/Pacific Islander Template:As of.<ref name="University of Phoenix-Arizona">Template:Cite web</ref> The 2020 Academic Annual Report for UoPX indicated women make up two-thirds of the student body, the average student age is 37, and more than 83 percent of its students are employed while in school.<ref name=2020report>Template:Cite web</ref> The 2020 report also noted that 21% of the student body were affiliated with the military, of which 41% are women. 26% of 2020 graduates were military-affiliated graduates.<ref>Template:Cite web</ref>

In 2020–21, 1,316 students used Department of Defense Tuition Assistance and 7,380 students used G.I. Bill funds.<ref>Template:Cite web</ref> The University of Phoenix has been a partner of U.S. Army University and has had a presence at a few military bases.<ref>Template:Cite web</ref>

Student outcomes

In 2016, a Brookings Institution study estimated the University of Phoenix's five-year student loan default rate at 47 percent.<ref>Template:Cite web</ref> The College Navigator lists the University of Phoenix's overall graduation rate at 15 percent.<ref>Template:Cite web</ref> According to the College Scorecard, of student debtors two years into repayment, 32 percent were in forbearance, 28 percent were not making progress, 13 percent were in deferment, 11 percent defaulted, 7 percent were making progress, 5 percent were delinquent, 2 percent were paid in full, and 1 percent were discharged.<ref>Template:Cite web</ref>

Rankings

UoPX was ranked 360th out of 438 schools in the 2024 Washington Monthly list of national universities.<ref>Template:Cite web</ref> The university is unranked in the 2025 edition of the U.S. News & World Report "National Universities".<ref>Template:Cite web</ref>

Ownership and leadership

UoPX is a subsidiary of Phoenix Education Partners, which has received backing from Apollo Global Management and Vistria Group.<ref>Template:Cite web</ref><ref name=PEP/> The president is Chris Lynne and the chief academic officer is John Woods.<ref name=Leadership>Template:Cite web</ref> Lynne previously worked at Arthur Andersen, Education Management Corporation, Northcentral University, and HotChalk.<ref>Template:Cite web</ref> Woods has a PhD in higher education administration from Bowling Green State University.<ref name=Leadership/>

Faculty

The institution depends almost entirely on contingent faculty: about 97 percent of Phoenix instructors teach part-time, compared to 47 percent nationwide. This reliance on part-time faculty has been criticized by regulators and academic critics. Most of the classes are centrally crafted and standardized to ensure consistency and to maximize profits. No faculty members get tenure.<ref name=Dillon021107 /><ref name=reason/> Adjuncts earn approximately $1000–$2000 per course.<ref>Template:Cite web</ref> Approximately 21 cents of every tuition dollar is spent on instruction.<ref>Template:Cite web</ref>

According to the Integrated Postsecondary Education Data System, the student to faculty ratio is 132 to 1 in the Arizona segment.<ref>Template:Cite web</ref> The university reported 76 full-time and 3,143 part-time faculty in its Arizona segment; full-time faculty make up 2 percent of the total faculty.<ref>Template:Cite web</ref>

Notes

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See also

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References

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