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Wednesday, November 11, 2009

University of Phoenix Sets Aside $80 Million For Whistleblower Settlement

The owner of the biggest for-profit school of them all -- Apollo Group, Inc. and its University of Phoenix -- has reportedly set aside $80 million to settle a pesky whistleblower lawsuit brought by enrollment counselors who contended that the school had violated federal law with practices that gave recruiters improper incentives to enroll students. A great read on this for-profit behemoth's troubled past in the area of enrollment of students can be found here: http://tinyurl.com/y9o7jrt. The organization that prepared this story -- http://www.propublica.org/ -- is "an independent, non-profit newsroom that produces investigative journalism in the public interest." It's difficult, frankly, to imagine two organizations more opposite one another than ProPublica and the Apollo Group. Kudos to ProPublica for its story on U of Phoenix, and to the whistleblowers and their attorneys who pursued these claims. If you have information about abuses by for-profit schools in the tactics that they will go to enroll students and tap into federal financial aid, we at FPS Watchdog would love to hear about.

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