Investors claim the school hid the fact that millions of dollars in revenue for the for-profit college came from a sophisticated – and prohibited – strategy of targeting veterans.
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.
The Defense Department is reviewing a response from the University of Phoenix to the military’s decision to ban its recruiters from military facilities and suspend it from enrolling more military personnel under the tuition assistance program, even as Republican senators came to the for-profit school’s defense.
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 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.