Univ. of Phoenix parent faces financial aid review

AP News
Posted: Jul 14, 2014 5:07 PM

NEW YORK (AP) — Apollo Education Group says the U.S. Department of Education will review the administration of federal student financial aid programs by its University of Phoenix subsidiary.

The for-profit education company said Monday that the government review, which is scheduled to start Aug. 4, will initially cover the 2012-13 and 2013-14 years. The review will also cover the University of Phoenix's compliance with laws governing campus security and crime statistics and drug policy.

Enrollments at for-profit education companies have been sliding amid heightened government scrutiny of the industry. Another for-profit education company, Corinthian Colleges Inc., is closing or selling dozens of campuses as it faces state and federal investigations.

Shares of Phoenix-based Apollo Education Group Inc. are down 6.2 percent to $27.73 in aftermarket trading Monday.