King: No special treatment for U of Phoenix buyers with Obama ties
- A potential sale of the University of Phoenix is creating questions about potential buyers’ ties to the Obama administration.
- U.S. Secretary of Education John King said federal review of the sale will be free of politics and special treatment.
- The expected $1 billion sale price of the for-profit college’s parent company will be on hold for approval from its accrediting body, which says it will wait for guidance from the Department of Education.
Several for-profit institutions may be looking for buyers in the near future, and the University of Phoenix sale could be a litmus for how companies can expect the federal government to respond to potential transactions of schools with questionable outcomes in student completion and job placement.
Obviously, for-profit schools continue to be a sound investment for the business community, as research has shown student satisfaction with the learning environment and with online learning in general. It remains to be seen how the business model will pivot to create better outcomes for students who enter with varying levels of preparation and skill.