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August 24, 2010
The University of Phoenix released a report illustrating why the for-profit sector is essential to achieving President Obama's goal of making the United States a leader in college graduations by 2020. The report also announced steps that the school would take in order to become the "gold standard" in for-profit education, reported Inside Higher Ed.
The Apollo Group, which owns the University of Phoenix and other for-profit schools, released a position paper entitled "Higher Education at a Crossroads" that outlined the important role that for-profit colleges play in not only meeting President Obama's national education goals, but also in creating a globally competitive workforce. The report noted that more than 60 percent of jobs require advanced skills training or education. As a result, more Americans are seeking higher education to remain competitive and advance in their careers. However, according to a press release 73 percent of college students are "non-traditional" learners, meaning they have families or are currently working and, thus, depend on schools like University of Phoenix that provide flexible options for students.
Furthermore, although traditional colleges and universities are "the backbone of the U.S. higher education system", Apollo Group argued that public schools are "exclusive by design". They calculated that it would cost more than $800 billion over the next ten years to education the tens of millions of students needed to reach the President's goal using just the public higher education system and argued that for-profit schools would help cut that cost in half.
According to the press release, University of Phoenix also stated a commitment to "promoting and preserving a culture of accountability, transparency and compliance". Gregory W. Cappelli, co-chief executive officer of Apollo Group, told Inside Higher Ed that the company is shifting "from a recruiting mentality and culture into one of a long-term relationship" between potential students and recruiters, who have been renamed "counselors".
Come September, University of Phoenix will no longer compensate its counselors based on enrollment numbers, which accounted for 32 percent of their evaluations. Instead, counselors will be evaluated on how well they interact with students. Additionally, the school will monitor some 30,000 calls to ensure that employees are not misleading students. "The purpose of marketing is to inform," said Cappelli.
In addition to changing its existing marketing and recruiting strategies, University of Phoenix will also introduce a free, three week student orientation designed to help less experienced students decide whether they can handle the rigors of college-level work before taking on student loans. Co-CEO Chas Edelstein told Inside Higher Ed that approximately 20 percent of students in the school's piloted program decided not to enroll for a variety of reasons.
Other schools have taken similar steps. Westwood College, for example, stopped incentive compensation for its recruiters this month. Both Kaplan Higher Education and Corinthian Colleges have eliminated the use of ability-to-benefit tests, which were used to admit students without a high school diploma or GED.
Although critics remain skeptical of how beneficial these changes will be for students, Dr. William J. Pepicello, president of University of Phoenix, said in the press release, "We strive to continually improve, and we are committed to providing the best education and strongest student protections possible."
Compiled by Heidi M. Agustin
Sources:
"A New Leaf at Phoenix?" insidehighered.com, August 24, 2010, Jennifer Epstein
"Apollo Group and University of Phoenix Examine the Future of Higher Education in America," businesswire.com, August 23, 2010
"Higher Education at a Crossroads," apollogrp.edu, August 2010, Apollo Group, Inc.
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