Distance Learning is NOT thought as good as traditional classroom learning
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The Education Department said that the $9.8-million fine was the largest it has ever assessed. Typically, a spokeswoman said, it levies financial penalties of $2-million to $3-million. Size, of course, is relative. For a company with annual revenues approaching $1.8-billion, one stock analyst noted, the fine paid by Apollo is "chump change." Phoenx University, is part of the Apollo
Group, a publicly traded corporation.
FOR-PROFIT COLLEGES UNDER SCRUTINY http://chronicle.com/weekly/v51/i07/07a00101.htm
Investigations of and lawsuits against colleges and companies in the for-profit higher-education industry have increased in recent months. Here is a glance at who is looking at whom:
U.S. Department of Justice
* Career Education Corporation is being investigated by the U.S.attorney in Chicago.
* ITT Educational Services is being investigated by the U.S. attorney in Houston.
U.S. Securities and Exchange Commission
* The SEC, which regulates financial activities of companies, is either investigating or conducting informal probes of Career Education, Corinthian Colleges, and ITT.
U.S. Department of Education
* The department had imposed restrictions on the awarding of federal loans and grants by one of Corinthian's Bryman Colleges, in San Jose, Calif., after finding that the
institution was not complying with federal financial-aid
procedures. The restrictions, which had been in place since December, were lifted last month.
* In September the department also settled with the Apollo Group following a yearlong investigation into recruiting practices at its University of Phoenix. The department said the $9.8-million ine was the largest it had ever levied. The settlement involved no admission of wrongdoing.
California Attorney General
* The division that investigates allegations of fraud involving government money is examining the activities of ITT.
* The consumer-protection division is looking into the practices of a number of for-profit colleges and companies, including Corinthian.
Accrediting bodies
* The Southern Association of Colleges and Schools, which accredits seven campuses of Career Education's American InterContinental University, has put them on warning status because of continuing problems with "institutional effectiveness."
* The Accrediting Commission for Community and Junior Colleges, part of the Western Association of Schools and Colleges, has put the two campuses of Career Education's Brooks College on probation.
Class-action lawsuits
* Shareholders of ITT and Career Education are seeking
class-action status for lawsuits that accuse the companies of using misleading financial information to artificially inflate
the value of their stock.
* Students at Florida Metropolitan University, which is owned by Corinthian, are seeking class certification for their claims that the company misled them about the transferability of credits from FMU.
"Employers Remain Slow to Embrace Online Degrees" 8/06
In its latest report on employers' views of online colleges, The New York Times offers some news that will encourage the Phoenixes and Kaplans of the world -- and some that should give them pause. More and more online learners are applying for hotly contested jobs, the Times reports. The Central Intelligence Agency, for example, estimates that between 5 and 10 percent of its new recruits have taken at least some courses over the Web.
But online education's reputation still suffers: Stories of
diploma mills and the University of Phoenix's allegedly
over-the-top student-recruiting tactics have left many employers reluctant to hire virtual learners. In one recent study, 96 percent of employers said they would choose an applicant who went to a bricks-and-mortar college
over one who obtained his or her degree online.
Distance Learning | courses | mba | programs and educational degree
You may find this very interesting. Those who go to college for their degree at Big American Company, Inc, may find that their college is closed and they have wasted x years of academic work when the company owning their college is bought by Even Bigger American Company, Inc. Will there be lawsuits and other fallout????
U. of Phoenix Buys Naming Rights to a Pro-Football Stadium 6.9.27
http://chronicle.com/daily/2006/09/2006092701n.htm
"This just underscores how much of a marketing titan they are," said Sean Gallagher, an analyst of the higher-education market with Eduventures Inc., a consulting company that works with for-profit colleges. "This is saying that Phoenix is in the same category as those large-scale marketers" that use such deals to build their brand-awareness, he said.
Admissions Group Revises Guide on Students' Rights, Warning Against 'High-Pressure Sales Tactics' 6.9.8
http://chronicle.com/daily/2006/09/2006090806n.htm
Students should not have to deal with "high-pressure sales tactics" from colleges during the application process, according the National Association for College Admission Counseling's recently revised admissions guidelines for students. The association, known as Nacac, announced on Thursday that it had added the new language to its brochure "Students' Rights and Responsibilities in the College Admission Process," following allegations that the for-profit University of Phoenix had paid recruiters based on the number of students they enrolled. Under the Higher Education Act, it is illegal for institutions that receive federal student aid to pay incentives to recruiters for signing up students.
Federal Appeals Court Reinstates False-Claims Lawsuit Against U. of Phoenix 6.9.6
http://chronicle.com/daily/2006/09/2006090601n.htm
In a ruling whose consequences could eventually strike a staggering financial blow to the University of Phoenix, the Ninth U.S. Circuit Court of Appeals reinstated a lawsuit on Tuesday that alleges that the nation's largest university obtained federal funds under false pretenses. The complaint, filed in 2003 under the federal False Claims Act,
alleges that the university wrongfully obtained a minimum of
$3-billion in federal funds during the six years before the lawsuit was filed. Of that, perhaps $1.5-billion is recoverable, said Nancy G. Krop, a lawyer for two former recruiters for the university, who filed the suit. If the university is found liable under the law, it could be ordered to pay up to three times that amount. "They lied to get the money. That's the whole case in a nutshell."
Harcourt Higher Education closing 6 Aug 2001
"The Thomson Corporation has announced that it will not continue to operate Harcourt Higher Education: An Online College as an independent degree-granting institution. Harcourt Higher Education will close on August 27, 2001. The closing is the result of a change of ownership, which occurred on July 13, 2001, when the Thomson Corporation purchased the online college from Harcourt General, Inc.
We are now part of Thomson Learning. For more information on the acquisition click here <http://www.thomsonlearning.com/harcourt>"
They say it's a simple result of the acquisition. Gartner thinks otherwise....
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The
summary can be found at http://www4.gartner.com/DisplayDocument?call=email&id=336477 .If you have access privileges, please sign-in to see the full
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Research
Summary:
Title : Fate of Online University Teaches Lesson
Author(s): Marti Harris
Last Revision Date : 03 Aug 01
Summary :
The closure of Harcourt Higher Education, a for-profit online university,
illustrates the pitfalls of competing with established institutions of
higher education on their own turf.
