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Friday, October 22, 2004
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UNIVERSITY OF PHOENIX FIGHT SONG
[University of Phoenix gets $9.8M federal fine By Bill Zlatos TRIBUNE-REVIEW Wednesday, October 20, 2004 A $9.8 million fine -- the largest ever imposed by the U.S. Department of Education -- will not affect the University of Phoenix's recruitment practices or future expansion in the Pittsburgh area, school officials say. "It has no effect on any of our business plans, and of course that would include expansions," said Terri Bishop, senior vice president of public affairs for Apollo Group Inc., the Phoenix-based owner of the university. It operates sites in Robinson and Monroeville and is considering moving into Washington County and Cranberry. The university did not admit guilt but agreed to what it calls a $9.8 million "settlement" with the government, which released a 46-page report earlier this month. The review details a climate where recruiters -- the university calls them "education counselors" -- received perks for meeting enrollment goals and pressure if they did not. The federal government alleged the university illegally based salaries on the number of students the recruiters enrolled. In a prepared statement, department of education officials said the agreement "demonstrates the department's commitment to ensure accountability in the federal student aid programs in a firm and fair manner and to act in the best interest of students and taxpayers." The government does not want recruiters to meet their admissions goals by offering federal aid to unqualified students. Corporate officials, meanwhile, dismissed the government report as "misleading and inaccurate." "Because of our settlement with the education department, we are not disclosing individual inaccuracies, but there are many," Bishop said. According to the report, 72 percent of recruiters interviewed -- none of whom worked for the Pittsburgh campus -- said the atmosphere at the university was all about "butts in seats." Successful recruiters could win all-expense-paid trips to places like Las Vegas or Universal Studios near Orlando, Fla. Some recruiters who failed to meet enrollment goals were sent to the "Red Room." There they sat at a table in a glass-encased room, with senior recruiters and managers hovering over them, listening to and monitoring their calls. "Most employees view the training as a positive experience, but it is not unusual that low-performing employees might characterize the training experience negatively," Bishop said. The description of recruiting practices, if accurate, disappointed Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers in Washington, D.C. "What is disturbing about the report," he said, "is the impression it leaves that you're dealing with what is, strictly speaking, a sales operation, and that is not what admissions is all about." Bishop said the university agreed to the settlement "because we found this process a distraction to our business." "While an independent audit confirmed the university's recruitment plan was in compliance with current regulations," according to its prepared statement, "the university has taken additional steps to strengthen its policies and procedures for communicating its recruitment practices to ensure they are more easily understood." The University of Phoenix has 108,900 regular students plus 118,900 students who take classes online, but it does not disclose enrollments at individual campuses. The university received $868.7 million in federal student aid last year. ] Enrollin' …rollin' …rollin' … Keep movin', movin', movin', Though they're disapprovin', Keep them students movin', Phoenix! Don't try to educate 'em, Just rope and throw and bait 'em, Soon we'll be living high and wide. Boy, my head's calculatin' My paycheck will be waitin', Be waiting at the end of my pitch. Move 'em on, head 'em up, Head 'em up, move 'em out, Move 'em on, head 'em out, Phoenix! Set 'em out, ride 'em in Ride 'em in, let 'em out, Cut 'em out, ride 'em in, PHOENIX! |