Apollo & their Cohort Default Issue

Much has been said over the last week regarding apollo and the manner in which they deal with their drops.

A complaint alleges that with regard to students who dropped from their courses shortly after enrolling, University of Phoenix improperly returned the entire amount of the students’ federal loan funds to the lender.  Therfore improperly inflating their default rate.

While I disagree with the practice, I do not believe its a door closer… and it’s not another EVCI

others however are much more bearish.

By far the most bearish viewpoint are:

Citron: http://www.citronresearch.com/index.php/2009/01/15/citron-comments-on-apollo-part-2-revenge-of-the-analysts/

and

Seeking alpha: http://seekingalpha.com/article/114648-apollo-group-s-strong-earnings-are-misleading

What do you think?

2 Responses to “Apollo & their Cohort Default Issue”

1. edman says:

   January 30, 2009 at 5:58 am

   This company is as they say in the banking world to big to fail. With over 300,000 students the govt wont yank their title 4 over something like this. They may fine them, but thats all. Watch this company continue to grow.
2. trader1 says:

   February 3, 2009 at 5:40 pm

   APOL Watchout this thing is going to pop…in a good way. nothing to worry about re that default issue, no harm no foul. its going to $100