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Apollo Education faces review by US Department of Education

07/24/2014

Phoenix Business Journal. July 14, 2014.

The U.S. Department of Education has notifiedApollo Education Group Inc. of its plans to review the way Apollo's flagship, University of Phoenix, administers federal student financial aid.

According to the an 8-K filed Monday with the U.S. Securities and Exchange Commission, it will be an ordinary course program review. It is scheduled to begin Aug. 4 and cover federal financial aid activities between 2012 and 2014. In addition, DOE officials will ensure that UOP is in compliance with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, the Drug-Free Schools and Communities Act, and related regulations.

During the past few years, Apollo has been changing the way it does business, with more focus placed on ensuring students are prepared for the rigors of advanced education.

During this time of transition, it has moved away from its aggressive recruiting practices, which has contributed to shrinking enrollment. New degreed enrollment decreased by 12 percent, to 33,900, and degreed enrollment decreased by 15.9 percent, to 241,900, compared with the same period a year earlier.

Despite lower revenue and net income, the Phoenix-based company continues to focus on growth.

The company's stock (Nasdaq:APOL) closed Monday at $29.57, closer to its 52-week high of $35.92 than its low of $18 a share.