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Undercover Investigation: University of Phoenix

By MSI in Background Checks, Chicago, Crime, Criminal Background Check, Electronic Fraud, fraud, hidden cameras, Illinois, Investigations, MSI Detective Services, Private Investigator, Safety, Screening, Security, Surveillance Services, Technology, technorati, Theft Investigations at August 22nd, 2010 | 7 comments
The University of Phoenix is the largest for-profit college in the United States, with nearly half-a-million students.  Former students, however, say they were misled into paying huge sums and taking on debt by recruiters, earning degrees that didn’t improve the student’s job prospects.

A Noble, IL mother desired to become an elementary school teacher and, after seeing an online ad, emailed the university. Minutes later, a call came in from a Phoenix recruiter who told her that enrolling in the degree program would “fast track” her for success due to an agreement between the Illinois State board of Education and Phoenix.

Once the degree was completed, said the, the woman would be ready to begin working.

The recruiter helped the woman obtain federally-backed financing. After a few months in the program, the woman found the University’s claims to be “an outright lie.”
An undercover investigation into the school’s recruiting practices was launched to find out what would happen. ABC News sent a producer undercover to meet one of the Phoenix recruiters. Posing as a student who wanted to be a teacher and work in either New York or Texas, the recruiter told the undercover investigator to enroll for a Bachelors of Science.  During the business investigation, the undercover student asked the recruiter to verify that once the degree was obtained, they’d be able to teach. The recruiter replied, “Yes, that is true.” The recruiter’s claim, however, was false; the degree did not certify teaching in any state.
This is not the first time Phoenix’s high-pressure tactics have been investigated. In December 2009 two former employees accused the university of violating federal financial aid regulations; the school settled out of court for $67.5 million.Further, Phoenix recruiters have been caught peddling enrollments for expensive education at homeless shelters. The college told ABC News it does not tolerate recruitment at such facilities and the guilty parties no longer work for the university.
If it sounds too good to be true, it probably warrants background investigation.


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7 Responses to “Undercover Investigation: University of Phoenix”

  1. […] This post was mentioned on Twitter by U-Spy Store, U-Spy Store. U-Spy Store said: Undercover Investigation: University of Phoenix « Myers Service, Inc. — Private Investigators […]

  2. Chris Simkins says:

    You know, this really pisses me off. How in the heck is the university getting by with this for so long? Thank god I did not accept the degree offer from Pheonix because if I were a student, I would demand full refund payment I put into the school and withdrawl from the school. I have a couple of friends that go there but they are withdrawling all 4 of them. They told me they are demanding a full refund on loans and such. Wow, University of Pheonix is going DOWN. No one will want to go to that school anymore on this bullshit

  3. Jean Renouard says:

    I started the University Of Phoenix in 2008 for AAHCA Medical Records, they told me the degree would certify me to work from home, or in a medical office. I was lied regarding the cost of the program , I was told it would have cost appx $8,200, The financial aid form said $13,000 for an Associates degree. After 18 months it ended up costing me over $20,000 in federal loans, I found out they put me in the wrong program , The curriculum followed the course until the last four that I would have needed to graduate. They kept my Pelt grant money which I was depending on because I was not working at the time. Then they were trying to insist I pay to finish the course they put me , plus pay for the courses I signed up for, which would have cost at least another $12,000 They did all this four months before I would have graduated. I made copies of everything I could and sent packets too Department of Education, Attorney Generals, College Accredidation office,Senators, FTC,BBB. various attorneys, but I can’t even find a job, let alone pay for a lawyer. The UOP still call ,and change my counselors even though I have not attended UOP since 12/2009. Today I get a 1098-T for stating I have to amend my taxes even though I did not go to school during the year 2010. Plus they gave my name to a collection counselor agency whom I turned into the FTC, I made arrangements with my lenders to defer my loans, the UOP has no business giving my name out. I hope all the students that have been taken advantage of from this hedge-fund university get paid for all they went through, It’s a sad state in this country when Non-profit schools can gain profit, while the student goes in debt with no education. Everytime I hear the President, or Congress talk about education, my stomach cringes, because they are not realizing problems with the education system, they just want to throw more money to these greedy people.

  4. Jeff L says:

    Thanks for comment. It really proves what you said: ” It’s a sad state in this country when Non-profit schools can gain profit, while the student goes in debt with no education.”

    The fact the “becoming a Phoenix” is advertised so much makes everything look like it’s legit, but there are stories on the web about recruiters, lying, and the cut-throat enrollment practices.

    They treated you poorly. You should see if there’s an investigator in your area willing to listen to your story. Some attorneys work until settlement, but you need to be careful in your choice.

    Sorry to hear about your misfortune. Best of luck.

  5. Dianna L says:

    Oh my god what in the blank is going on here..I have been duked and so has my friend. We like Jean Renouard were told the same stories. I need help, because when they find out I ran from them they are going to seek full refund back and I can’t afford it. They made so many promises to me and my friend and like suckers we fell into it, I have NEVER attended any place wehre you are osully on your own and when it comes to the counselors, they suck as well. They tell you what you want to hear based off the information that they have on you from what you submit to them…
    Why are they allowed to hurt the poor? They need and should be shut down.
    This is my opnion…

  6. […] Phoenix, the largest recipient of veteran educational benefits. (People in this position have been under investigation for swindling students into taking out student loans they would never be able to pay back.) So […]

  7. Jeff says:

    This as happen to me what can be done or do i just lay here and take it . I need some info if you can help answer a couple of questions for me . There’s my e-mail help if you can