However, Military Times reported on a letter it obtained that was sent by the Office of the Assistant Secretary of the Defense to the University of Phoenix.
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A Pentagon spokesman cited “reports of non-compliance” with DoD’s military education Memorandum of Understanding, or MOU, but declined to provide any further information on the school’s rule violations or the reasons for the action.
He said that the University of Phoenix took in $1.2 billion in GI Bill benefits since 2009.
In July, the FTC demanded information about the university’s marketing and advertising techniques, which may possibly have been deceptive.
On Wednesday Apollo released an 8K saying that the DoD had put it on probation for using its logos without permission and holding events on military installations without the proper clearance.
President of the University of Phoenix Bill Pepicello stands with commencement speaker Martha Stewart at the university’s graduation ceremony on June 29, 2012.
The move is another blow to the University of Phoenix, which said it is under investigation by the Federal Trade Commission and California Attorney General Kamala Harris related to recruitment of members of the US military and the California National Guard.
Iraq and Afghanistan Veterans of America said the Veterans Administration should restrict the amount of money payable to the University of Phoenix through the GI Bill.
Apollo filled an 8-K form – which flags an unscheduled material event for investors – with the Securities and Exchange Commission, and announced that the DoD is still considering whether it will wholly terminate allowance of such practices at the school.
“University representatives had been working closely with DoD leaders and we all expected a different response from DoD”, Tim Slottow, President of the University of Phoenix, said in a statement.
Under the probation, the military will review whether University of Phoenix violated its tuition agreement with the agency and, if so, what enforcement action it should take.
The coins-which are bigger than a silver dollar and often have unit insignia-are often given by those in the military to one another for a job well done or to commemorate an event. In a correspondence to the school earlier this week, the Pentagon gave the school 14 days to respond to the allegations.
“The institution will not be authorized access to DoD installations for the purposes of participating in any recruitment-type activities”, Dawn Bilodeau, chief of the Defense Department’s Voluntary Education program, told the Wall Street Journal.
While on probationary status, now eligible enrolled students will remain eligible to participate in the Tuition Assistance Program.
Senator Durbin has also proposed legislation that would change the incentives for for-profit institutions by counting Tuition Assistance Program money as part of the 90-percent cap on revenue they may receive from federal sources.
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