Death of a Diploma Mill: University of Phoenix Going Down in Flames?

A phoenix is {a parrot|a chicken|a fowl} that rises from the ashes, but the {University or college|College or university|School} of Phoenix is a diploma mill that may soon go down in flames.
On Wednesday, {University or college|College or university|School} of Phoenix's parent company Apollo Education Group {announced|reported} that the business and marketing practices of the for-profit school are now under investigation by the Federal Trade Commission (FTC). CNNMoney reports that Apollo will "cooperate fully" with the FTC investigation, which requires them to {supply the|give the|give you the} federal agency with documents {on the|issues|prove} finances, marketing, {certification|qualification}, and military recruitment {methods|procedures|techniques} from the last four years.
Apollo's stock (APOL) predictably took a nosedive {following an announcement|pursuing the announcement|following announcement}.

For the {University or college|College or university|School} of Phoenix, which is the {most significant|major} for-profit {advanced schooling|degree} institution in the Circumstance. S. with an {concentrate|emphasis|target} on online programs, a federal investigation is the latest in a long series of disasters {that may|that can} topple an once-thriving {business|organization|venture}.
With this latest {analysis|exploration|research}, University of Phoenix is under particular scrutiny for recruiting veterans. The {Connected|Linked|Affiliated} Press reports that the school's online program has collected over $488 {mil|, 000, 000} in tuition and fees from veterans, not including the billions in GI Bill money that specific campuses have collected. {More than|Above} the last several years, the school comes under fire for allegedly {placing|putting} up this GI money while leaving veterans {buckled|secured|in a tight} with debt.
New {federal government|national} rules require schools with career-training programs to produce graduates who can {pay back|pay off} their student education lending options in order to {get|obtain|acquire} federal student aid. {Intended for|To get|Pertaining to} a school that already has notoriously low {graduating|college graduation} rates, this bar may be out of reach.
According to Department of Education data, the {University or college|College or university|School} of Phoenix online grounds has a graduation rate of seven. 3 percent and {financing|credit|that loan} default rate of 19 percent--5 percent higher than the {nationwide|countrywide} average. A report from the Center for {Researched|Examinative} Reporting (CIR) claims that 24, 000 Iraq and Afghanistan war veterans were signed up for the online program last {12 months|yr|season}.
Earlier this month, that CIR report prompted Senator Richard Durbin to ask the Department of {Protection|Security} to investigate allegations {regarding|related to|associated with} the school's recruiting on military bases.
In response to Wednesday's news of the FTC investigation, Durbin released a statement {stating|expressing|declaring}, "I wish I could say I am {amazed|astonished|shocked} by the news that the FTC is {looking into|checking out|examining} the University of {Phoenix, az|Phoenix, arizona|Phoenix az} for unfair and {misleading|deceitful} practices, but these accusations {are|are typical|are generally} too familiar when it comes to the for-profit {college or university|school} industry. {inch|inches|very well}
The investigation also comes after a long {collection|range|series} of financial defeats for the for-profit school.
In 2012, University of {Phoenix, az|Phoenix, arizona|Phoenix az} shuttered 115 of {the|their|it is} physical locations and {set|put|placed} off over 4 percent of its staff. {These types of|These kinds of} closings came on the heels of an incriminating 2010 report by The Education Trust (PDF) that found the college {experienced|got|acquired} a six-year graduation rate of only 9 percent for students seeking a bachelor's degree.
Student {financial debt|personal debt|debts}, one the other {part|aspect|area} of the coin {hands|palm|side}, {appears to be} a fairly reliable outcome for University of Phoenix students. In 2013, USA Today listed {a number of|many of} its campuses as "red flag" schools for {publishing|submitting|placing} graduation rates that were significantly lower than the rates of students defaulting on their loans--in {City|Community|Local area} Detroit, for example, {graduating|college graduation} rates were just {12|twelve|15} %, but over twenty-five percent of students defaulted on their loans.
The school has also come being doubted for {the|their|it is} enrollment of veterans in the past. Last {This summer|Come july 1st|September}, california state asked the University of Phoenix to halt veteran enrollment in seven of its programs to prevent violations of the Veterans Affairs 85/15 rule, which requires that programs do not {sign up|register|join} more than 85 percent veterans. The rule is supposed to prevent {colleges|universities|institutions} from exploiting federal help for veterans.
This {apparently|relatively} endless stream of bad news has taken {the|their|it is} toll on the school's bottom line: tuition. {Relating|Regarding|Matching} to a CNNMoney {statement|record|survey} from March of this year, University of {Phoenix, az|Phoenix, arizona|Phoenix az} enrollment has dropped from 460, 000 students five {years back|in years past|yrs ago} to 213, 000--a precipitous 54 percent {drop|plunge}.
Apollo declined further {review|brief review|statement} to AP about the FTC investigation into the University of Phoenix and has not released further statements. The federal {authorities|federal government|govt}, on the other {hands|palm|side}, has already warned that other for-profit schools with poor performance numbers could be next.
In a July statement, U. {H|T|S i9000}. Secretary of Education Arne Duncan said: "The {time clock is|time is} ticking for bad actors in the {profession|job} {college or university|school} industry to do right by students. {All of us|We all} know many have {used|considered} procedure for improve or to close programs that underperform, but {we expect|we feel} there is more work to be done across the board so students get what they pay for: solid preparation for {a realistic alternative|a good-job}. "