Apollo faces investigation on federal reporting
The U.S. Department of Education plans to investigate for-profit education company Apollo Group Inc. to ensure it complied with federal student financial aid rules at its University of Phoenix chain.
Apollo disclosed in a filing with the U.S. Securities and Exchange Commission on Wednesday that Education Department found that the University of Phoenix had previously misreported the status codes for its verification of student-supplied information. The university has to verify information and report it to the department in order to participate in federal student financial aid programs.
The U.S. Department of Education plans to review the university's reporting during the 2010-2011 award period, as well as 2011-2012 to date. The review will begin July 16.
Representatives for Apollo and the U.S. Department of Education were not immediately available to discuss the matter.
The news comes amid a broader crackdown on for-profit colleges to ensure students of these career programs are able to find jobs and manage their debt after graduation. The schools must meet certain guidelines or risk losing access to federal student aid in the future.
Shares of Apollo Group, based in Phoenix, fell 22 cents to $35.59 in midday trading.
