A federal investigation found the for-profit college and three other educational programs use deceptive marketing.
The move, Sen. Tom Carper writes, represents “a drastic departure from the intent of Congress and weakens important ethics standards.”
Using Veterans Day as a backdrop, the Obama administration announced its support for a bill that seeks to rein in for-profit schools that prey on veterans and military personnel eligible for the GI Bill and military tuition assistance programs.
Veterans groups and U.S. Sen. Dick Durbin, who have pressed for wider inquiries into for-profit schools, are defending the Defense Department’s decision to withhold new tuition assistance money from the University of Phoenix because of violations of military rules.
Executives of the parent company of the University of Phoenix attempted to regain investor confidence this morning amid plummeting stock prices and ongoing scrutiny from state and federal officials investigating the for-profit school’s recruiting practices.
The Department of Defense said it would suspend the University of Phoenix from federal tuition assistance programs and bar school officials from recruiting at military facilities after revelations of improper recruiting and marketing practices by the for-profit school.
The Department of Veterans Affairs has vowed to increase scrutiny of unaccredited schools that received federal funds through the GI Bill and to review state criteria that allow the financial benefit for such schools.
The Defense Department has confirmed that it is reviewing whether recruitment practices by the University of Phoenix, the country’s largest benefactor of GI Bill funds, comply with federal law.
PBS NewsHour showcases Reveal reporter Aaron Glantz’s investigation into how the University of Phoenix – the school that receives the largest share of GI Bill money – has sidestepped an executive order banning deceptive and aggressive recruiting practices by for-profit colleges.
Eight U.S. senators are demanding that the Department of Veterans Affairs launch an inquiry into revelations that GI Bill tuition subsidies have flowed to questionable unaccredited schools.