WASHINGTON – U.S. Senator Dick Durbin (D-IL) issued the following statement after the U.S. Department of Education (ED) announced a series of terms for approval for the pending sale of University of Phoenix’s parent company, Apollo Education Group. The conditions of approval require a $385 million Letter of Credit from the new owners, prohibit enrollment increases, ban the use of mandatory arbitration clauses in student enrollment contracts, and require the disclosure of state or federal investigations and lawsuits.
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“Today, the Department of Education made clear that students and taxpayers deserve to be protected in the potential sale of the University of Phoenix, the largest for-profit education company in the country. I commend Secretary King for ensuring that the new company will not be able to avoid accountability to their students through the use of mandatory arbitration clauses in enrollment contracts and will be required to disclose the state and federal investigations it faces. These and other terms of approval laid out by the Department today are fair and consistent with its obligation to students and taxpayers.”
Durbin previously expressed concern over the proposed sale of the University of Phoenix. In a March letter to the Department, Durbin questioned how the sale would impact students and taxpayers at a time when the University is under increased scrutiny from state and federal regulators.
