University of Phoenix Barred From Military Bases

What's Hot

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

Where to Sell Your Stuff for Top DollarAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

8 Tuition-Free U.S. CollegesCollege

10 Overlooked Expenses That Ruin Your BudgetFamily

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

20 Simple Hacks to Make Your Stuff Last LongerAround The House

12 Surprising Ways to Wreck Your Credit ScoreBorrow

The for-profit university also may not enroll new, active-duty students using military tuition assistance while the Defense Department investigates recruiting tactics.

You won’t see the University of Phoenix recruiting students on U.S. military bases.

Amid allegations of recruiting violations, the Department of Defense has banned the for-profit chain of colleges from recruiting at military facilities and accessing the DoD’s tuition assistance program, which provides financial aid to active-duty troops, The Wall Street Journal reports.

University of Phoenix President Tim Slottow said the DoD’s move to ban recruiting efforts and cut off tuition assistance to new students came as a surprise.

“The University intends to continue its cooperation with federal and state agencies to respond to their requests,” he said in a statement. “University representatives have been working closely with DoD leaders and we all expected a different response from DoD.”

According to the DoD, the University of Phoenix failed to get proper approval for its base events and neglected to get authorization to use trademarked seals and military insignia on the university’s version of the military’s challenge coins, which were used by the military to recognize good work or commemorate an event, CNN Money reports.

The university said it has ceased using the challenge coins.

The University of Phoenix, which has come under fire from the Center for Investigative Reporting and the Federal Trade Commission for its military recruiting tactics, currently has more than 200,000 enrolled civilian and military students.

According to The Washington Post, the Defense Department’s tuition program helped more than 10,000 service members pay for their University of Phoenix education last year.

The University of Phoenix is the largest recipient of federal student aid for veterans, taking in nearly $1.2 billion in GI Bill benefits since 2009. The Defense Department’s decision has no bearing on whether the school can receive GI benefits, which are allocated through the Department of Veterans Affairs. Defense officials said they planned to keep the for-profit university on probation until it completed a review of the school.

For-profit colleges cannot get more than 90 percent of their operating revenue from federal student aid. Interestingly, although G.I. Bill benefits are federal student aid, they don’t count toward the 90 percent limit. “That gives for-profit schools an incentive to target veterans in order to stay below the threshold,” CNN Money said.

The University of Phoenix, like many other for-profit colleges, has struggled in recent years. The Phoenix-headquartered chain of colleges lost more than half its students in the past five years, forcing it to close at least 100 campuses, CNN Money noted. It expects enrollment to decline by about 56,000 students this year.

What do you think of the DoD’s move to ban the University of Phoenix from recruiting on military bases? Share your comments below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 6 Money Lessons Every College Student Needs to Learn

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,856 more deals!