Accrediting agency lifts sanction against University of Phoenix

The University of Phoenix has been removed from "notice" status by its accrediting agency and faces no other academic sanctions, the company announced Thursday.

The Higher Learning Commission, a private, nonprofit regional accrediting agency, took action June 25 after placing the university on notice two years ago. Sanctions potentially could have led to loss of accreditation.

Apollo Education Group Inc. and its wholly-owned subsidiary, University of Phoenix Inc., faced concerns over governance, student assessment and faculty scholarship/research for doctoral programs, according to a company filing with the Securities and Exchange Commission in October.

The Higher Learning Commission announced the probationary period in July 2013, the same time that the HLC reaffirmed the University of Phoenix's accreditation through the 2022-2023 academic year.

"Notice status is a sanction that means that HLC has determined that an institution is on a course of action that, if continued, could lead the institution to be out of compliance with one or more of the HLC Criteria for Accreditation or Core Components," according to company securities filing Thursday.

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The University of Phoenix submitted a Notice Report in November and hosted the HLC for a focused visit in January. That was enough to meet criteria for accreditation, core components and assumed practices, according to the release.

"We are appreciative of the work done by the HLC staff and the independent peer review team made up of professionals in higher education, and their recognition of the efforts undertaken by everyone at University of Phoenix to satisfactorily resolve all concerns identified in 2013," University of Phoenix President Timothy P. Slottow and Provost Meredith Curley wrote in a letter to staff and faculty Thursday.

"One fact has always remained true; that since 1978, University of Phoenix has been continually accredited by the HLC and its predecessor. And for those nearly 40 years, the HLC has proven to be an innovative accrediting body, willing to examine closely our University and ensure our continuous improvement and educational quality."

The Republic reported in Feb. 2013 that a Securities and Exchange Commission filing for Apollo Group said there was not enough autonomy between the for-profit college and its parent company.

Before the university was placed on notice, a team visited 148 University of Phoenix campuses over three months, meeting with faculty, staff and students, according to the filing. They found concerns over graduation rates, sufficiency of doctoral programs, reliance on federal student financial aid and other concerns

While these were areas of concern, they were not the basis for the notice recommendation, the 2013 SEC filing said.

The lifting of sanction was was a bright spot in a bleak few months for the University of Phoenix and Apollo Education Group. Enrollment is down 57 percent from its peak in June 2010, and revenue lags 47 percent below 2010 levels.

In late June, Apollo Education Group laid off roughly 600 workers, many of them enrollment counselors. On July 2, Sen. Richard Durbin, D- Ill., petitioned Defense Secretary Ashton Carter to investigate tactics used by the university to attract soldiers and veterans as students.

Apollo Group's stock, which has fallen roughly 60 percent since January, rose 7.3 percent Thursday to $13.58.

The Higher Learning Commission accredits about 1,000 colleges and universities in 19 states, including Arizona State University and the University of Arizona.

The University of Phoenix will host a comprehensive evaluation visit in 2016-2017 and will undergo its next accreditation process in 2022-2013, according to the company.