Apollo Group Inc., the largest U.S. for-profit college operator, said U.S. regulators concluded their review of financial aid programs in 2009-2010 and 2010- 2011 with no adverse findings.
The Department of Education closed its review of how the University of Phoenix, Apollo’s largest unit, handled Title IV financial aid funds without imposing economic sanctions, the company said today in a regulatory filing. For-profit colleges get as much as 90 percent of their revenue from federal student loans and grants.
Investigators examined the financial aid cases of 30 University of Phoenix students selected at random in December, according to a Feb. 8 letter from the Education Department to Apollo. While the investigators found three examples where Phoenix violated procedures, they concluded the university had corrected the errors without requiring additional sanctions, the letter said.
Apollo gained as much as 2.8 percent in extended trading after declining 9 cents, or less than 1 percent, to $45.73 at the 4 p.m. New York time close of Nasdaq Stock Market composite trading. The company’s shares have fallen 21 percent in the last 12 months.
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