University Of Phoenix: Misleading Students Or Not?

The University of Phoenix has been accused of misleading students with deceptive advertising and false claims about post-graduation job opportunities. The university allegedly used misleading advertising campaigns that falsely gave potential students the impression that the school had partnered with companies including Microsoft, Yahoo, Twitter, and the American Red Cross to provide students with employment opportunities after graduation. The Federal Trade Commission (FTC) charged the university with running ads from 2012 to 2014 that featured these employers, potentially giving the impression that the school had connections with them and tailored its education to make students attractive to those companies. The FTC settlement in 2019 included a $191 million fine and $50 million in cash payments to affected students. The University of Phoenix, however, continues to deny any wrongdoing.

Misleading advertising

The University of Phoenix has been accused of misleading advertising on several occasions. In 2019, the university was hit with a record-breaking $191 million lawsuit settlement by the U.S. Federal Trade Commission (FTC), which alleged that the university had engaged in deceptive advertising strategies and made false claims about post-graduation job opportunities for students. The FTC claimed that the university's advertising campaigns falsely implied partnerships with companies such as AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross, misleading potential students about employment opportunities after graduation.

The University of Phoenix has also been accused of misleading advertising regarding its status as a private, for-profit institution. In 2024, the university ran a national advertising campaign suggesting that it was a public, state-operated institution, which seemed to violate its 2019 settlement agreement with the FTC. The campaign included video ads on YouTube and Facebook, touting "No out-of-state tuition," a concept that only applies to state-operated colleges and universities. This deceptive tactic may have led prospective students to believe that the university was a more affordable option than it actually is.

In addition to these incidents, the University of Phoenix has faced other controversies. In 2004, the Department of Education alleged that the university violated provisions of the Higher Education Act by providing financial incentives to admission representatives and pressuring recruiters to enroll students. The university paid a fine of $9.8 million as part of a settlement but did not admit any wrongdoing.

The University of Phoenix has also been criticized for its high-pressure sales tactics, misleading claims about credit transferability, and aggressive recruitment strategies that target economically disadvantaged and non-traditional students. These controversies have resulted in lawsuits, declining enrollment, and increased scrutiny from government agencies.

Job opportunities post-graduation

The University of Phoenix has been accused of misleading students with deceptive advertising, claiming to work with top companies to create job opportunities for its students. However, the university offers a range of job opportunities for graduates across various fields.

The University of Phoenix offers a diverse range of career paths for its graduates. Here are some examples of job positions that the university advertises:

• Student Support Specialist: Working in a fast-paced, home-based virtual office, student support specialists provide academic advisement, coaching, and customer service to students. They act as a bridge between students and university administration, ensuring students have access to information and support.
• Finance Advisor: This role involves providing financial aid counselling and evaluating financial aid applications in a university setting. The university offers benefits such as tuition vouchers and an effective recognition program.
• Account Executive: Account executives at the University of Phoenix are responsible for business development and client management. They offer excellent benefits, including tuition vouchers and a competitive salary.
• Faculty Positions: The university often hires graduates as associate faculty members to teach in their respective fields. These positions are part-time and may be online or on-campus, depending on the course and the instructor's preference. Faculty members are provided with resources such as workshops, mentorship programs, and educational technologies.
• Program Chair: The University of Phoenix also offers leadership positions such as program chairs, who oversee specific academic programs and ensure their quality and effectiveness.
• Management and Administrative Roles: The university also has various management and administrative positions, such as account engagement managers and regulatory federal student aid managers, who handle student financial aid and related processes.

The University of Phoenix values its alumni and offers a range of resources and benefits to support their career development. The university's career services include personalized career planning, job search assistance, and access to a network of employers and alumni.

Additionally, the University of Phoenix offers a fully remote work environment, allowing employees to achieve a healthy work-life balance and enhancing productivity. The university also emphasizes its commitment to diversity and inclusion, fostering a diverse and inclusive workforce by attracting talent from across the country.

Military and Hispanic students disproportionately affected

The University of Phoenix has been accused of misleading students with deceptive advertising and high-pressure sales tactics. The for-profit university has faced multiple lawsuits, investigations, and controversies, leading to a significant decline in enrollment. In 2020, the University of Phoenix enrolled 21% of students with military affiliations, with women making up 41% of this demographic. In the same year, 1,316 students used Department of Defense Tuition Assistance, and 7,380 students used G.I. Bill funds.

The University of Phoenix has a long history of catering to military-affiliated students, including service members, veterans, reserves, spouses, and dependents. The university provides various benefits and resources for this demographic, such as tuition rates, credit for prior education and life experiences, and mental health services. The university also has partnerships with military bases and organizations, such as the U.S. Army University, to facilitate the educational goals of military-affiliated students.

In addition to military students, the University of Phoenix also has a significant number of Hispanic students, comprising 11% of the student body as of July 2022. The university offers scholarships, grants, and other financial aid options to attract and support a diverse range of students.

The impact of the University of Phoenix's misleading practices on military and Hispanic students is significant, as these demographics make up a substantial portion of their student body. The university's reputation and enrollment have suffered due to these controversies, and the effects are felt disproportionately by these student groups who relied on the university's specialized services and resources.

High-pressure sales tactics

The University of Phoenix has been accused of using high-pressure sales tactics to recruit students. Recruiters were allegedly trained to create a sense of urgency by telling prospective students that classes were filling up fast when this was not true. They also allegedly implied that federal grants would cover costs, even if that was uncertain. Recruiters were encouraged to rope students in with phony claims and high-pressure tactics.

The University of Phoenix has also been accused of misleading students about the transferability of credits. Two former students claimed that Phoenix recruiters had lied to them about the transferability of credits. Angelia Baldwin of Aberdeen, South Dakota, said she was assured by her enrollment counselor that she could take general health care classes and then transfer the credits to a school that offered alternative medicine. However, after 18 months and $11,000 in tuition, she found out that her credits would not transfer.

Another student, Michele Rambo, was told that her credits would transfer, but when she tried to move to another college, they did not accept her Phoenix credits. She also claimed that counselors misled her about financial aid, telling her that she was entitled to enough grants to cover her costs because she was pregnant. However, she later discovered that she had loans that would total $18,000 by graduation.

The University of Phoenix has denied that counselors were trained to trick students or that they approved of dishonest tactics. However, the university has faced multiple lawsuits and settlements related to deceptive advertising and enrollment abuses.

Poor graduation rates

The University of Phoenix has been criticised for its low graduation rates, with some sources citing figures as low as 16% or 17%. However, it's important to note that graduation rates can vary depending on the specific demographic and type of student.

The University of Phoenix targets non-traditional working adults as its primary market. These students are typically working, single parents, or individuals looking to advance their careers while also balancing other commitments. The average age of these students is between 33 and 36 for undergraduates and graduate students, respectively.

When examining the graduation rates of first-time, full-time students, the University of Phoenix's performance is less favourable compared to the national average. For example, the graduation rate for first-time, full-time students at the University of Phoenix was 18% after four years, 20% after six years, and 21% after eight years. In contrast, the national average graduation rate for first-time, full-time undergraduates is 37.92% after four years, 46.43% after six years, and 47.82% after eight years.

The University of Phoenix's overall graduation rate, which includes its primary target market of non-traditional students, is reported to be 59%, which is higher than the national average of 25.9%. However, it's worth noting that this figure may not reflect the entire graduation rate for the institution, as it does not include all students enrolled.

The low graduation rates among first-time students at the University of Phoenix have been attributed to aggressive and misleading recruitment practices. The university has been accused of incentivising recruiters based on the number of students they enrol, resulting in the enrolment of potentially under-qualified students. This has likely contributed to the lower graduation rates observed among this demographic.

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