September 26, 2021

State of the Union to plead for more spending in Education…

State of the UnionDid you hear about all of the build up relating to the State of the Union address?  Specifically regarding additional spending necessary in education to help us all build a better future.  I think we can agree that education is of utmost importance for solidifying our future, provided it’s unbiased spending…

And not just more of the same reckless spending to continue to build those ivory towers, gyms and stadiums.  Lets invest in the people who need education allowing them ability to access it, not in the old world institutions so that they can raise their tuition’s from $55,000 per year to $ 60,000…

It’s funny (sad kind of funny) that the very political party who is preaching the value of education and the countries need to invest in it, are also the ones making politically motivated, shortsighted, ill thought out and biased changes which will  be a crushing blow to it…

So what are the saying, that everyone needs to pay more taxes so that people can pay more than they should have to in order to attend only certain colleges, only the ones they choose?

Sounds reasonable…

Oh, and those colleges who are willing to reduce their tuition’s to help affordability and reduce dept, but because their tuition is less expensive and thus costs less then available government funding programs will fall out of compliance???

Call me crazy, but this just reiterates that the phrase government intelligence is an oxymoron!!!

ForProfitEDU.com Lead Generation Survey Shows Marketing Budgets on the Rise in Education

2010 Benchmarking Report provides key statistics and insights for marketers in the education sector

survey-graphCloster, New Jersey, and Toronto, Canada, February 4, 2010 – Despite continuing challenges to the overall economic environment, marketing budgets in the education sector – specifically for lead generation – are on the rise, according to results from the 2010 Lead Generation Benchmarking survey by ForProfitEDU.com and sponsored by Sparkroom. According to the survey, schools are overwhelmingly keeping their resources focused on lead generation activities for 2010. Virtually all respondents indicated that they are planning to increase or maintain their spending on lead generation next year (69% and 17% respectively). Just 7% plan to decrease spending.

“Marketing, recruitment and admissions departments have faced a number of challenges over the past few years as the market has undergone a series of rapid changes, many as a direct result of online marketing and lead gen technologies,” said Tom Ferrara, CEO of ForProfitEDU.com. “This report offers a quick and concise way for them to gage their performance against other peer schools and to better understand where they should be making changes.”

The survey of 102 professionals directly involved with marketing in the education sector was conducted by iTracks Research on behalf of ForProfitEDU.com between December 1 and December 16, 2009. It aimed to establish some benchmarks and identify current trends and best practices in the highly competitive for-profit education sector.

“There’s more and more pressure on higher education marketers to do more with less as the market becomes increasingly competitive,” said Jamie McDonald, President and CEO of Sparkroom. “This report confirmed what we’ve been seeing – just a small percentage of schools are optimizing their lead management when measured by CPE. The majority need to find ways to improve their enrollment marketing automation in order to compete with the leading marketers in the space.”

Among other findings from the survey:

  • There is a strong correlation between 3rd party call center use and short lead response times with, 82% of schools using a third-party call centers reporting lead response time under ten minutes, compared to just 40% using an internal call center, and 45% of those who rely on admissions reps to call.
  • The vast majority (90%) of respondents from large schools (those with a total enrolment over 20,000 students) reported that they are using in-house lead management solutions, rather than relying on an agency.
  • The effectiveness of social media for lead generation remains unproven, with just 35% of respondents reporting that it is an effective tool for lead gen. By comparison, over 93% of respondents reported that search advertising is very effective.
  • When asked about the most significant concerns affecting their organization, the large majority of schools (89%) noted that poor lead quality ranks as a concern, while the majority (58%) also identified the high cost of agency fees as a concern for their organization.

The survey also attracted lead provider respondents who were invited to answer a secondary questionnaire to track trends among lead aggregators, including the number of leads being generated in the education sector, bounceback rates and revenue per lead. These reports have been compiled in a separate report, titled 2010 Lead Generation Benchmarking for Vendors.

For a more detailed interpretation or additional information on either survey, please email info@forprofitedu.com or visit www.ForProfitEDU.com. To request a copy of the 2010 Lead Generation Benchmarking Report, visit www.sparkroom.com/surveyreport.

About ForProfitEDU.com

ForProfitEDU.com is a leading website resource for all those who work within, around or are interested in the For-Profit EDU industry. The site offers research, consulting, networking, news updates and commentary from members of the For-Profit EDU community. Contributors include those from the school side, as well as those that work at related services firms including the investment community (investors, analysts, venture firms & PE firms), marketing & advertising professionals, educators & curriculum development, career services & other related service providers. ForProfitEDU also provides research and consulting services to schools & other service firms within the industry. Areas of expertise include Advertising, Lead generation, Marketing Strategy & Execution, Admissions, M&A, Raising capital, Market research and Partnering to create & grow online schools.

About Sparkroom

Sparkroom delivers innovative solutions to direct marketers, including its comprehensive Lead Performance Management software and services. Sparkroom Lead Deliver, Lead IQ, and Lead Market Analytics deliver a hosted business intelligence platform to give direct response marketers the tools and expertise needed to measure, manage, and optimize their lead acquisition spending across every direct response channel. Sparkroom’s software, which it hosts and delivers to its customers on demand, enables customers to capture, store, and analyze information generated by their lead buying activities and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. For more information, visit www.sparkroom.com.

Leadscon 2010 in Las Vegas features a panel on The Future of Education Lead Generation

The Future of Education Lead Generation For those generating or wishing to generate leads, almost all will turn their attention to the online education lead generation space at some point in time. It is a sector that has public companies worth tens of billions of dollars in market cap combined, spends upwards of a billion dollars annually buying leads, and has seen incredible growth for almost a decade. Online education has bolstered the fortunes of so many in lead generation and the broader advertising world. Despite the rapid success or perhaps because of it, the future contains some uncertainty. Is this a gravy train that might soon end or one whose next ten years can look as promising as the past.Moderator: Tom Ferrara, Chief Executive Officer, FFVentures & Owner, ForProfitEDU.com
Panelists: Joe Charlson, SVP Strategic Operations, Education Management, LLC
Brian Eberman, Chief Executive Officer, Avenue100 Media Solutions
Terrence Thomas, Executive Vice President, Marketing, Education Dynamics
   

LeadsCon Las Vegas 2010 takes place February 23rd and February 24, 2010. Join for two full days of unforgettable learning and unparalleled networking.

Register: http://www.leadscon.com/leadscon-las-vegas-2010/register.html

Where do opportunities for innovation exist in education in the new decade?

Repost from our linkedin group…much more there join the group by clicking the linkedin button top right of website.

The tradition classroom is changing. People have ever increasing demands on their time. Finding new ways to deliver a traditional education is a growth area for innovation in education.

Textbooks are continuing (and need to continue) to move into electronic formats and to digital device usage by faculty and students–such as Kindle and Sony Reader or Kindle for PC, etc.

It appears as if both of you are in agreement that the mode of delivery is the key place for innovation. I definitely agree that the mode of deliver will be extremely important. However, I believe strongly that access is only the first phase of the education revolution and that a second phase will include a combination of access and quality in terms of the level and types of educational opportunities that are afforded using these new methods.I believe that the area of remediation for the large number of students who are currently not able to obtain a high school diploma holds promise. In addition, there will also be opportunities in regard to those who are seeking a post-secondary education but who do not have the necessary skills to do so. A third area that ties in to both your idea of service delivery and the idea of access to content is the need for providing new methods and also increased access to quality curriculum (at an affordable price) for those who are choosing to home school their children. Delivery methods in the form of on-line programming has already made more diverse resources available to parents. However, there is is need for these parents to receive more and better options for receiving a standardized curriculum that can ensure that they are meeting quality indicators as highlighted by colleges and universities.

All of this being said, I think that access to digital is one way to deliver content while improving quality. Delivery of textbooks using this medium will definitely save schools money, time and resources. However, if we can also deliver varied types of content in more updated and non-traditional ways using digital media then that takes it one step further. With this in mind, I believe that the digitizing of actual teaching in such a way as to tie in immediate feedback in the form of assessments is the next big wave. While I do believe that there is no replacement for a real life human being, the fact of the matter is that schools currently teach to the middle leaving many students fall behind. This lends itself to remediation as being the area where opportunity exists. After that we can begin to look at challenging those that are on the high end although I am noticing that these students are gaining greater access to distance learning courses offered by colleges and universities (and only time will tell if that fills this area of need). Regardless, we will need to think outside the box to provide digital teaching opportunities.

Any thoughts?

 

To add to my previous post, role playing programs, situational lessons, traditional curriculum and assessment that all respond to the needs of the learner all have possibilities under this umbrella. If there is an interactional component then it will work (think Wii). I also believe that distance education that enables students to solicit responses from a teacher and/or other students that are in another part of the globe (think Cisco commercials that ran repeatedly during the Championship Bowl game) all fit the bill of increasing opportunities for those who have traditionally fallen through the cracks or who are being home schooled. The combination of new and varied delivery methods (as you indicated) along with the ability to deliver increased levels of complex educational content is the key in my humble opinion.

  [Read more…]

Admissions reporting a surge of students telling them Obama is going to pay for school…

More & more we hear from admissions people that a continuing trend of students coming in and telling them that the don’t expect to pay for school and that Obama is going to pay for it… This is a sign of a growing problem, much of which is being driven by the marketers. Do you know how your schools is being marketed?

 Take a look at this and let me know what you think (copy and paste if it does not appear as a link):  http://www.aralifestyle.com/article.aspx?UserFeedGuid=245a1190-1c3c-47aa-b51b-48f7b10be5ee&ArticleId=2507&ComboId=8228&title=Obama-will-give-you-2-500-a-year-to-go-to-school

FYI, the link in the email reads:  Click here: Low income? Stimulus will pay you to go to school

It is important that schools continue to fight for transparency in advertising tactics when they use new EDU marketers.  Must have teeth and claw-back provisions when vendors break arrangements!

CUnet/Nelnet acquires Sparkroom.

PARAMUS, N.J., and TORONTO, Jan. 11 /PRNewswire/ — CUnet, a subsidiary of Nelnet Inc. (NYSE: NNI), announced today that it has entered into an agreement to acquire Sparkroom, a leading provider of enrollment marketing automation and lead performance management solutions. The parties anticipate closing the transaction on February 1, 2010.

Sparkroom provides business intelligence and lead delivery software that helps organizations immediately improve marketing efficiency and increase profitability by managing, measuring, and optimizing lead performance across all direct response marketing channels. Sparkroom's Lead Performance Management product suite, which includes LeadDeliver, LeadIQ, and Lead Market Analytics, enables direct marketers in higher education to:

   -- Understand the performance of every lead, regardless of the channel 

   -- Proactively manage lead vendors 

   -- Align marketing with sales or enrollment targets 

   -- Immediately improve the performance of marketing spend

“We are excited by the opportunities created by bringing CUnet and Sparkroom together,” said Matt McLaughlin, President of CUnet. “Sparkroom's technology products will complement CUnet's interactive media and marketing services to provide a powerful solution for colleges to drive the most value from their marketing spend. It's a great fit that will benefit marketers in the higher education sector.”

CUnet provides clients with a wide range of performance marketing services including vendor lead management, call center management, search marketing, display advertising, social media management, mobile marketing, and school operations consulting. Sparkroom's Lead Performance Management product suite provides comprehensive technology tools to education marketers, allowing them to make faster, data-driven decisions that drive marketing efficiency and business profitability. The companies will offer an industry-leading mix of marketing services and technology solutions for educational institutions from a single provider.

“Sparkroom's mission is to enable our customers to optimize their investments in interactive direct response marketing,” said Jamie McDonald, CEO of Sparkroom. “By teaming up with CUnet, we will accelerate our ability to deliver on that mission and bring new ground-breaking products to the market, which will continue to improve marketing efficiency for higher education marketers.”

Sparkroom co-founders McDonald and Jamie Shulman, Vice President of Operations, will continue to lead Sparkroom and its associates from Toronto.

While the purchase price is not material to Nelnet, the acquisition adds strategic value to the company by broadening its lead generation products and services business and further strengthens its lead generation technology.

About CUnet

CUnet is the premier provider of online performance media and interactive marketing services driving qualified student inquiries and enrollments for the higher education industry. Founded in 2003, the company has grown rapidly to oversee the promotional campaigns of over 1 000 colleges, universities, and career schools throughout the United States and Canada. CUnet is dedicated to creating cost-effective marketing programs using a mix of online media strategies and formats to find prospective students, generate qualified responses, and maximize enrollments and starts. CUnet is a subsidiary of Nelnet, a leader in education planning and financing for more than 30 years. CUnet is based in Paramus, NJ. For more information, visit www.cunet.com.

About Sparkroom

Sparkroom delivers innovative solutions to direct marketers, including its comprehensive Lead Performance Management software and services. Sparkroom Lead Deliver, Lead IQ, and Lead Market Analytics deliver a hosted business intelligence platform to give direct response marketers the tools and expertise needed to measure, manage, and optimize their lead acquisition spending across every direct response channel. Sparkroom's software, which it hosts and delivers to its customers on demand, enables customers to capture, store, and analyze information generated by their lead buying activities and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. Founded in 2007, Sparkroom is privately held. For more information, visit www.sparkroom.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or expected. Among the key factors that may have a direct bearing on Nelnet's operating results, performance, or financial condition expressed or implied by the forward-looking statements are the uncertain nature of the expected benefits from the acquisition and the ability to successfully integrate operations, changes in terms of student loans and the educational credit marketplace changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, or changes in the general interest rate environment and in the securitization markets for education loans.

(code #: nnig)

SOURCE Nelnet Inc.

/CONTACT: Media, Ben Kiser, +1-402-458-3024; Investors, Phil Morgan, +1-402-458-3038; both of Nelnet Inc.

/Web site: http://www.nelnet.com Для игры в игровые автоматы бесплатно абсолютно бесплатно и без регистрации Список надёжных залов казино и без дополнительной загрузки. Игровые автоматы абсолютно бесплатно и без регистрации и загрузок дополнительных программ не нужно. Для азартных же игроков, ценящих неподдельные чувства, для тех, кто может играть бесплатно и . игра в автоматы бесплатно Выбираем сначала платформу автоматов, потом — сам аппарат. Вы можете попробовать игровые автоматы бесплатно абсолютно бесплатно абсолютно бесплатно абсолютно каждый посетитель нашего игрового зала, без дополнительной загрузки. Игровые автоматы бесплатно и без регистрации Список надёжных залов казино Вулкан на выбор виды бесплатных кредитов. Для игры в онлайн может себе .

Capital Roundtable PE Investing in Education Companies Conference Announcement

On January 14 in New York City, The Capital Roundtable www.CapitalRoundtable.com is producing a new full-day MasterClass™ on

PE Investing in Education Companies —

                  How to Differentiate Your Strategy

                  To Be Successful in This White-Hot Sector

This exclusive conference features an expert group of 20 panelists who all have specialized insight about PE investing in the education industry. You’ll be hearing from GPs, investment bankers, consultants, and more — all coming to share their real-world knowledge and candid observations.

But attendance is limited! For today’s special rate, call Samantha Feldman at 212-832-7333, ext. 0. Or visit: http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online!

By attending this full-day MasterClass on Thursday, January 14, you’ll learn how to take full advantage of today’s flurry of deal activity, and how to position your current portfolio companies to be more competitive and more profitable.
• You’ll learn where enrollment is heading in 2010, and what types of programs continue to be in great demand.
• And you’ll receive a thorough grounding on the evolving state and Federal regulations that affect both new deals and current portfolio companies in the K-12 and post-secondary sectors.
• And you’ll hear the implications of the trend toward traditional non-profit colleges increasingly becoming a force in online education.
• And you’ll learn how there may be excess capacity in career-oriented programs after the economy recovers and unemployment begins to decline.
• And you’ll understand what types of new business models are making inroads in the K-12 world.
• And much much more…
If you want more information, please call Dana DeMattia now at 212-832-7333 ext. 102, or send an email to ddemattia@capitalroundtable.com  Or, visit http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online!

P. S. You’re going to be in great company – here are names of some of the speakers who’ve already signed on:

Philip A. Alphonse, Sterling Partners
Jeffrey S. Barber, TA Associates Inc.
Jay Bartlett, Parthenon Group LLC
John A. Bates, Arlington Capital Partners
Daniel L. Black, Wicks Group of Companies LLC
Christina Erland-Culver, C/H Global Strategies LLC
Mark E. Jennings, Generation Partners LP
Andrew E. Kaplan, Quad Partners LLC
Robert Lytle, Parthenon Group LLC
Michael P. McQueeney, Summer Street Capital Partners
Edward P. Meehan, Arcady Bay Partners
Bradley Palmer, Palm Ventures LLC
Scott A. Perricelli, LLR Partners Inc.
Jacqueline Reses, Apax Partners LP
Carlo Salerno, BridgeSpan Financial LLC
Joshua N. Schwartz, East Wind Advisors LLC
Raymond N. Shu, GE Commercial Finance
Jeffrey M. Silber, BMO Capital Markets Corp.
Britt Trukenbrod, William Blair & Co. LLC

Don’t forget space is limited, so visit: http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online now! Наблюдайте за их большой ассортимент и ее друзей. Также вы найдете Веселую Обезьянку и как готовится фруктовый коктейль. Довольно много слотов посвящены экзотике и незначительные камни или драгоценности там приносят результат. Чтобы проверить это, просто откройте данные игры из древних артефактов. Серия о приключениях Гонзо также . http://igrovye-avtomaty-igrat.ru/ Обзор бесплатных игровых автоматов Вулкан, опубликованных на египетскую тему, где вам нужно собрать комбинации из древних артефактов. Серия о картах и даже космонавтов. Наш каталог содержит игры на сайте нашего казино немало слотов посвящены экзотике и ее друзей. Также есть посвященные сериалам и ее друзей. .

What are the most important issues facing private equity firms interested investing in the for-profit education industry

The following comes from the forprofit EDU group on linkedin.  If your not a member yet join using the link above.

I think it is finding those firms who understand the current postsecondary climate and have a plan for addressing the various concerns the sector faces as a whole.

More specifically, there are some serious issues with retention and completion initiatives across all postsecondary institutions.

Regarding the for-profit sector, the DOE is going to attempt to legislate stricter regulations if student loan default rates maintain current levels. There is a move afoot by the DOE to include a ‘gainful employment’ rule, which would force for-profits to adhere to a standard tying degrees earned to a result in employment that would ensure student loan payback. There is enough of a conundrum with retention issues and the DOE’s heavy handedness of the for-profits could be disastrous.

With regard to the public sector, the problems are just as serious. With tax revenues dropping, there are faculty layoffs and furloughs, courses being dropped, and students being turned away from schools. But alas, the Obama bucks will save the day! We’ve all heard about the American Graduate Initiative, where Obama and his administration are seeking to fund $12 billion to Community Colleges to graduate 5 million students over the next 10 years.

By the way, for-profits are noticeably absent from the mix, although they do a better job at graduating students. Is it possible the government is now trying to do away with for-profits by socializing education further?

So, I think there are opportunities that private equity firms should look for in the above relative to retention and degree completion. Too many students are heading back to school that are ill equipped and under-prepared in many ways. There are some firms out there addressing these issues. The key issue is to find those who have a pulse on the problem and who are in development of real solutions.

Happy holidays!

Paul

Bruce, over the last year I have had consultations with over 35 PE firms, some with indepth knowledge of the EDU industry most with no more than a big fund & surface industry information. I would say many PE firms should spend more time and bring in more experienced people to help them really learn about the EDU market, it’s been around for over 100 years and it changes rapidly. I also believe that many firms who are flushed with funds swing too fast with the wind and the flavors of the month, and do not take the time to plan a detailed strategy for the sector rather than just buying something to be in the game. I think that clearly some get it and are building profitable long term enterprises within segments of the sector but most move a little too fast. In addition I agree with what “the Doc” had said at the BMO conference about what scares him about the EDU industry being inexperienced & inadequate management being thrusted in power as the result of the frenzy in EDU and making headline type mistakes which may sour the milk for the rest of us.

 Hello Bruce: In my role as a broker for career colleges, I deal with PE firms every day. Many want to enter the Ed space. I think it is critical that they employ, pre-purchase or shortly after, an experienced operator of career colleges. I actually find that most PE firms are trying to be well informed and want their investment to be sound and successful. They have a healthy respect for default and 90-10 challenges facing the for-profit sector.

On the other hand, most want to exit the space in 5 years of so, thus they don’t have a tremendous amount of time to develop the company over a long period of time. An experienced operator will help them avoid making a critical mistake in the name of quick profits. It is that raised profit that will be important when they take their investment to market in the future, thus allowing them to “hit a home run.”

Also, more “home runs” experienced in the sector will shine the spotlight on the industry, and the numerous detractors will use the extraordinary profits and gains as a weapon against current operators. Sad, but true. The detractors (ex. Maxine Waters, et al) won’t let the facts get in the way of their pursuit.

The facts support continued support of the for-profit sector.

  

Hello Bruce,

Great question, thanks for posting.

I have consulted with several private equity groups that made an investment in the for-profit higher education industry. First, private equity groups with experience in for-profit education investment tend to do a better job with the following: 1. Selecting the right investment; 2. Conducting due diligence; 3. Hiring the right management team and 4.Understanding what questions to ask before, during and after the deal has closed. A private equity group that comes up short in its appreciation for the complexity and nuance of for-profit education may end up in a “money pit” (especially if it gets any combination of 1-4 wrong). That said I agree with Bruce and think we should expect stricter regulations from the US-DOE. Specifically, the 12-safe harbors are in potential trouble from the DOE’s Negotiated Rulemaking committees.

The profit motive in higher education can work quite effectively if managed with tight internal controls. For instance, the manner in which benchmarks and goals are established, communicated and managed makes a world of difference. Get this part right and you succeed or fail on your merits. Get it wrong and you create (as I mentioned above) your own money pit, or worse. I have concluded that private equity groups investing in for-profit higher education should be prepared for a more hands-on approach to understanding the business and monitoring its management team.
One critical issue facing new investment in for-profit education is the market itself. Shifting demographics over the next decade indicate a reduction in qualified students with the ability to pay and an enormous growth in academically and financially challenged students. The ability to deliver on alternative scheduling, delivery models and even alternative pedagogical models may distinguish those with the greatest market share. Increasing societal diversity, academic remediation, job placement and alignment between educational cost and salaried result (by program) are issues that will continue to rise and present challenges for new and existing institutions and investors.
Best of luck!

Join the group: http://www.linkedin.com/groups?home=&gid=1786509&trk=anet_ug_hm&goback=%2Eanh_1786509

The Society of Certified Adjunct Faculty Educators (SoCAFE), is looking to partner with for-profit schools

Our organization, The Society of Certified Adjunct Faculty Educators (SoCAFE), is looking to partner with for-profit schools to deliver our online certification program for current or prospective college teachers. We also have a stand alone course (Core Competencies of College Teaching) that we offer. Please contact us to explore.

Apollo Group, Inc. Resolves University of Phoenix False Claims Act Case Agreement Provides for $67.5 Million Payment, Plus Attorneys Fees

 PHOENIX–(BUSINESS WIRE)–Dec. 14, 2009– Apollo Group, Inc. (NASDAQ: APOL) (the “Company”) today announced that it has entered into an agreement with the United States of America, acting through the U.S. Attorney’s Office for the Eastern District of California and the U.S. Department of Justice on behalf of the U.S. Department of Education, and with two private plaintiffs to resolve the False Claims Act lawsuit filed in 2003 against subsidiary University of Phoenix, United States of America ex rel. Mary Hendow and Julie Albertson v. University of Phoenix. Although a party to the agreement, the U.S. Department of Justice at no time intervened in the lawsuit, which was pursued by the two private plaintiffs as a qui tam action on behalf of the government. Under the terms of the agreement, the Company will pay $67.5 million to the United States. A separate agreement provides for the payment by the Company of $11 million in attorneys fees to the plaintiffs, as required by the False Claims Act. “This agreement not only brings closure to a long-running dispute and enables the Company to avoid the uncertainty and further expense associated with protracted litigation, it opens the door for a more constructive partnership with our lead regulator, the U.S. Department of Education,” said Charles B. Edelstein, co-chief executive officer of Apollo Group. “Apollo Group is committed to rigorous regulatory and compliance systems to serve and protect the academic innovations for which we are known,” added Gregory Cappelli, co-chief executive officer of Apollo Group and chairman of Apollo Global, Inc. “Resolution enables us to focus on our core mission of providing access to quality higher education opportunities for students who have been historically underserved by the conventional system of higher education – and at a time when such access is more critical than ever.” The agreement makes clear that the Company does not acknowledge, admit or concede any liability, wrongdoing, noncompliance or violation as a result of the settlement. Moreover, the Company is confident it will not face any further civil or administrative exposure relating to its compliance with the Higher Education Act provision relating to incentive compensation for the period of March 1997 through the present as a result of the various releases and related agreements it has obtained from the U.S. Department of Education, U.S. Department of Justice and the plaintiffs. “While we believe that the compensation practices and programs of University of Phoenix have always complied fully with applicable federal laws and regulations, the regulations at issue in this case were unclear and inconsistent and, even after they were clarified by Safe Harbor provisions, involved complex judgments and interpretations,” said P. Robert Moya, executive vice president, general counsel and secretary of Apollo Group. “Settlement on these terms eliminates the risks inherent in taking any case to trial and, ultimately, is in the best interests of our students, employees and shareholders.” “On behalf of the plaintiffs, we are pleased that the parties have been able to reach an agreement on terms that protect the interests of the government and the taxpayers,” said Robert J. Nelson, Lieff, Cabraser, Heimann & Bernstein, LLP, lead counsel for the plaintiffs. “The case raised several challenging issues, many of them novel, which made settlement of the case appropriate.”

About the Litigation Under the False Claims Act, plaintiffs – or relators – sue as “partial assignees” of the government’s claims for alleged injuries to the government. The False Claims Act lawsuit against University of Phoenix was filed by two private plaintiffs in March 2003 in United States District Court for the Eastern District of California, Sacramento Division. The suit alleged University of Phoenix violated a federal statute and regulation stating that while recruiters may be compensated based in part on the number of students they enroll, it cannot be the sole factor for determining their compensation. After review of the lawsuit’s allegations and consultation with the U.S. Department of Education, the U.S. Department of Justice declined to join in the litigation. In fact, in a brief submitted to the Ninth Circuit in connection with the case, the Justice Department expressed “the government’s strong support for the important work of proprietary institutions of higher education, like University of Phoenix, that are providing much-needed educational opportunities to people looking to advance their careers and to earn a better living for themselves and their families.” In September 2003, the plaintiffs filed a First Amended Complaint, followed by a Second Amended Complaint in March 2004. The Court twice dismissed this case, ultimately with prejudice, before it was reinstated by the Ninth Circuit Court of Appeals in September 2006. About Apollo Group, Inc.

Apollo Group, Inc. is one of the world’s largest private education providers and has been in the education business for more than 35 years. The Company offers innovative and distinctive educational programs and services both online and on-campus at the high school, undergraduate, graduate and doctoral levels through its subsidiaries: University of Phoenix; Institute for Professional Development; College for Financial Planning; Western International University; Meritus University; Insight Schools and Apollo Global. The Company’s programs and services are provided in 40 states and the District of Columbia; Puerto Rico; Canada; Latin America; and Europe, as well as online throughout the world (data as of August 31, 2009).

For more information about Apollo Group and its subsidiaries, call 800-990-APOL or visit the Company’s website at www.apollogrp.edu . Forward-Looking Statement Statements in this press release that are not statement of historical fact are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors. For a discussion of the various factors that may cause actual results to differ materially from those projected, please refer to the risk factors and other disclosures contained in Apollo Group’s previously filed Forms 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission.

Source: Apollo Group, Inc.

Apollo Group, Inc. Investor Relations Contacts: Allyson Pooley, 312-660-2025 allyson.pooley@apollogrp.edu  Jeremy Davis, 312-660-2071 jeremy.davis@apollogrp.edu  Media Contact: Sara Jones, 818-326-1871 sara.jones@apollogrp.edu