The Apollo Group released its quarterly fiscal report on Tuesday, revealing that its revenue and enrollment figures were down for the University of Phoenix.
The decline, according to the company, was due to policy changes requiring for-profit universities do more to help its students succeed.
Net revenue for the second quarter of the fiscal year was $1,048.6 million, a 2% decline from the same time last year. That stems from lower enrollment at the University of Phoenix, something partially offset by tuition price increases and by improved student retention rates. Nonetheless, University of Phoenix enrollment decreased 11.6% to 405,300 compared to the second quarter of 2010, with an almost 45% drop in new students.
According to the Apollo Group, the latter was a result of some of the new policies it has put in place, including the requirement that newly enrolled students who have very few credits under their belt go through an orientation program to make sure they're actually ready for college before they enroll (and rack up student loan debt).
As one of the most well-known for-profit universities, University of Phoenix has come under increasing scrutiny and criticism for its recruitment and retention practices.
Apollo Group Co-CEO Greg Cappelli described this as a "period of transition for our business," and while he says there are signs of improvement in several leading indicators, the company's stocks took a tumble following Tuesday's report