OPINION: University of Phoenix purchase is a risk for UI

This purchase could put the university on the hook for several million dollars annually

University of Idaho’s Administration Building | Connor Anderson | Argonaut

On Tuesday, three Democratic U.S. senators signed a letter condemning the University of Idaho’s purchase of the University of Phoenix. In their letter, the senators point to Phoenix’s “long record of poor student outcomes, deception of veterans, and entanglements in federal investigations and enforcement actions” as reasons for UI to leave this deal before it goes through. 

These incidents are well-documented. In 2015, due to predatory recruitment policies, the Department of Defense temporarily barred Phoenix from receiving Tuition Assistance funds for current and former service members. Phoenix has also been targeted by the Federal Trade Commission for false advertising. 

Yet all the messaging coming from the University is talking about a 100 million dollar cash flow coming from the purchase, and how the money will help lift the University over an anticipated enrollment drop, due to the drop in children born between 2007-2009 as well as the criminally low 37% of Idaho graduates who are planning on going on to a traditional 4-year institution. Yet, the unfortunate issue is that this is a problem we could have avoided altogether by better funding our schools.  

Idaho schools are ranked number 32 in educational quality, and we only spend 8, 000 dollars per student in their K-12 education, one of the least in the nation. Yet we seem so insistent on blaming our funding troubles on a decrease in enrollment, rather than our lackluster K-12 programming. 

But that isn’t even the worst. All over the UI information page, it speaks of the trust that the University has for the people running the University of Phoenix, but the current President was only named in December, after the man before him, George Burnett, who left in shame in the midst of a Department of Education inquiry

And yet the worst part of it, is that if this venture fails, it puts the university, which according to all their reasoning will soon be strapped for cash, would be put on the hook for the 10-million-dollar payments on the loans used to purchase Phoenix for the next 20 years.  

From my view as a student, there seems to be a lot of risk in getting in bed with such a risky organization. I hope we don’t catch those loan payments. 

About the Author

Abigail Spencer I am the 2023-24 Copy Editor and a senior studying Journalism and Political Science.

3 replies

  1. Everard Baker

    Today it was announced the Biden administration granted loan forgiveness specifically to University of Phoenix students who we defrauded, to the tune of $37 million. The “brand equity” of the University of Idaho, and the integrity of those in leadership are increasingly being drawn into question. This is incredibly disappointing to see as an alumnus, and distressing to see the combative tone in response to legitimate concerns.

  2. Peggy K Schunk

    Please do not risk the good name of the University of Idaho as well as the futures of your alumni. Surely other ventures exist.

  3. Dahn Shaulis

    Abigail, the long-term situation may actually be worse. The Higher Education Inquirer reported more than 74,000 Borrower Defense to Repayment claims against the University of Phoenix. This could put the school on the hook for several hundred million dollars and possibly more than a billion.

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