Phoenix falling

Interesting article in the NY Times about the woes of the University of Phoenix the enormous American on-line private University hyped by some in Australia as the future of higher education:
According to federal statistics and government audits, the university relies more on part-time instructors than all but a few other postsecondary institutions, and its accelerated academic schedule races students through course work in about half the time of traditional universities. The university says that its graduation rate, using the federal standard, is 16 percent, which is among the nation’s lowest, according to Department of Education data. But the university has dozens of campuses, and at many, the rate is even lower. But many students say they have had infuriating experiences at the university before dropping out, contributing to the poor graduation rate. In recent interviews, current and former students in Arizona, California, Colorado, Florida, Michigan, Pennsylvania, Texas and Washington who studied at University of Phoenix campuses in those states or online complained of instructional shortcuts, unqualified professors and recruiting abuses. Many of their comments echoed experiences reported by thousands of other students on consumer Web sites...The complaints have built through months of turmoil. The president resigned, as did the chief executive and other top officers at the Apollo Group, the university’s parent corporation. A federal court reinstated a lawsuit accusing the university of fraudulently obtaining hundreds of millions of dollars in financial aid. The university denies wrongdoing. Apollo stock fell so far that in November, CNBC featured it on a “Biggest Losers” segment. The stock has since gained back some ground. In November, the Intel Corporation excluded the university from its tuition reimbursement program, saying it lacked top-notch accreditation.