UNIVERSITY of PHOENIX

This school is owned by The Apollo Group (Nasdaq: APLO). The Apollo Group has flying high for several years, making a lot of money. The money basically was from the federal government Title IV program which gives out grant money and guarantees student loans. U of P caters to part-time students, a lot of whom are already employed, but looking to improve their work situation. They spend a lot of money in advertising. Their recruiters are apparently very aggressive, and earn bonuses based on their enrollment of new students.
And there's the rub. The feds are evidently suspicious of U of P's practices in this regard, and wonder if the money they are passing on to U of P is really benefitting students, or just boosting the market cap of The Apollo Group.
This is worth watching as U of P is not the only private proprietary "institution of higher learning" that has been raking in the federal dollars. Kaplan has been doing pretty well, too.