University of Phoenix
University of Phoenix[3] (UoPX) is a private for-profit university headquartered in Phoenix, Arizona.[a] 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[4] and has an open enrollment admissions policy for many undergraduate programs.[5] The school is owned by Apollo Global Management and Vistria Group.[6]
Not to be confused with Phoenix College.Motto
We Rise
1976
John Sperling
John D. Murphy
Apollo Global Management and Vistria Group
Chris Lynne
2,727 (2022)[1]
4,578 (2022)[1]
76,000 (2022)[1]
60,700 (2022)[1]
13,100 (2022)[1]
2,200 (2022)[1]
History[edit]
Foundation and rapid growth (1970s–2000s)[edit]
University of Phoenix was founded in 1976 by John Sperling and John D. Murphy.[7][8] In 1980, it expanded to San Jose, California, and launched its online program in 1989.[9] 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".[10]
In 1994, UoPX leaders made the parent company, Apollo Group, public. Its enrollment exceeded 100,000 students by 1999.[11][12] 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."[13] 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.[14] In 2007, The New York Times reported that the school's graduation rate had plummeted and that educational quality had eroded.[15]
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.[16][17]
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.[16] The university's parent company settled by paying the government $67.5 million, plus $11 million in legal fees, without admitting any wrongdoing.[18][19]
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.[20] 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.[21][22][23] 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.[24][25] UoPX settled a false claims suit for $78.5 million in 2009 over its recruiter-pay practices.[26]
In 2008, Pereira & O'Dell became the lead ad agency for UoPX for a reported $220 million.[27] During the 2008–2009 fiscal year, the UoPX student body received more Pell Grant money ($656.9 million) than any other university[28] and was the top recipient of student financial aid funds, receiving almost $2.48 billion.[29]
For the 2008–2009 fiscal year, the university's student body received more Pell Grant money than any other university. 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.[30] University of Phoenix has been the largest recipient of federal G.I. Bill tuition benefits[31] and the largest for-profit recipient by Pell Grant assistance funding.[32]
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.[33] 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.[34]
Enrollment decline, transition to online courses (2010s)[edit]
In 2010, UoPX claimed a peak enrollment of more than 470,000 students with a revenue of $4.95 billion.[35] A 2010 report found that its online graduation rate at the time was only five percent.[36] 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,[37] and on September 4, 2018, the stadium's naming rights were acquired by State Farm.[38]
Ownership and leadership[edit]
UoPX is a subsidiary of Apollo Global Management and Vistria Group.[147] The president is Chris Lynne and the chief academic officer is John Woods.[148] Lynne previously worked at Arthur Andersen, Education Management Corporation, Northcentral University, and HotChalk.[149] Woods has a PhD in higher education administration from Bowling Green State University.[148]
Student demographics[edit]
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 as of July 2022.[150] 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.[151] 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.[152]
In 2020–21, 1,316 students used Department of Defense Tuition Assistance and 7,380 students used G.I. Bill funds.[153] University of Phoenix has been a partner of U.S. Army University and has had a presence at a few military bases.[154]
Faculty[edit]
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.[16][127] Adjuncts earn approximately $1000–$2000 per course.[155] Approximately 21 cents of every tuition dollar is spent on instruction.[156]
According to the Integrated Postsecondary Education Data System, the student to faculty ratio is 110 to 1 in the Arizona segment.[157] 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.[158]
Student outcomes[edit]
In 2016, a Brookings Institution study estimated University of Phoenix's five-year student loan default rate at 47 percent.[159] The College Navigator lists University of Phoenix's overall graduation rate at 15 percent.[160] 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.[161]