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Thanks to Valerie Strauss for reporting that the University of Phoenix is experiencing a huge enrollment decline and a consequent drop in its profitability and stock price. I am not at all sorry to see this, as I am not an aficionado of online “colleges” or for-profit education institutions.
The University of Phoenix, the largest for-profit university in the United States, has lost a few hundred thousand students in the last five years, according to its parent company.
Apollo Education Group, which owns the University of Phoenix, announced Wednesday that revenues and enrollment had fallen in the last quarter about 14 percent compared to the same period in 2014. What’s more, the school’s enrollment five years ago was 460,000 students and now it is 213,000, CNN Money reported. The news on Wednesday sparked a 30 percent drop in Apollo’s stock. (Apollo stock was at $19.57 a share in Thursday morning trading, down 2.4 percent.)
The University of Phoenix, which started in 1976 in the Phoenix area, delivers education largely online but also has brick-and-mortar classrooms. In recent years it has been forced to close some of its classrooms and has faced competition from traditional universities that have started their own online courses.
Studies have shown that many of the for-profit institutions are predatory and concerned more with profit than with learning. Education should be profitable but intellectually and spiritually, not on the stock exchange.