When the University of Idaho announced this May that they had been given the go-ahead to move forward with the acquisition of the University of Phoenix, it came as a shock to many Vandal students and the UI community. UI has claimed that this $550 million deal to acquire this online university will guarantee $10 million a year for UI and will expand the online learning opportunities for Vandal students. While there may be some benefits for Vandal students, due to this acquisition, an overall sense of apprehension has arisen because of the confusing transparency and clarity from the University, and as students, we want to know what this acquisition really means and how it will affect the UI population.
UI has been marketing this acquisition as an overall positive move for the Vandal community, but there has been confusion and doubt over what the benefits for students will actually look like. While UI claims that this move will help non-traditional and rural students have access to more online resources and will improve the online learning options for Vandal students, the primary motivating factor is much simpler: money.
The University is facing a potential enrollment cliff in 2025, which means that they are expecting less students to enroll, leading to a loss of income for UI. This enrollment cliff comes when the 2025 freshman cohort applies for college. In 2008, due to the recession, the number of births decreased, resulting in the looming 2025 enrollment cliff. The University of Phoenix acquisition is UI’s solution to this gap in tuition funds, which was not explicitly shared with students or the community in the promotional announcements about the acquisition.
UI does not need to sugarcoat their motivations behind this seemingly abrupt acquisition announcement. In fact, the way that they have handled announcing this news to the community has done nothing to clarify confusion, but only increased apprehension regarding the purchase.
Many people in the UI community have been concerned about the history of lawsuits and settlements involving the University of Phoenix, and others are concerned with the risk that UI will ultimately lose money due to this acquisition. Although UI has claimed that neither of these concerns are of any merit, this has not been made digestible to the UI community, who is simply looking for straightforward answers.
What UI needs to consider is that the students and Vandal community just want answers and transparency. University leadership needs to take the initiative to communicate clearly with those concerned and be honest about their motivations for the acquisition. They need to make it understandable to the student population. This honesty will abate the growing apprehension concerning the acquisition and the potential repercussions for UI students.
Although UI has claimed that the two universities will remain separate institutions, President Scott Green recently stated in an interview with the Argonaut that the institutions are looking to pursue co-branding and other collaborative efforts that will directly affect students and alumni from both institutions. UI needs to be straightforward with current and future students about what they can really expect from this acquisition, and how this will shape the future of UI. Even though changes will not influence this year’s students, they would still appreciate knowing what their alma mater will look like in the three years, five years and even 20 years to come.
More than any promotional fluff, what UI students really want is honesty and simple clarification from UI leadership. The Vandal community deserves clear communication from the University on a decision this big, and if UI wants the full support of students and alumni, they need to have clear, understandable communication every step of the way.
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Dahn Shaulis
You are correct in wondering if the University of Phoenix will be an albatross for the University of Idaho--even if it has 43 Education as its shill. The University of Phoenix has been a subprime college for years and its former students owe an estimated $14B-$35B. The University of Phoenix already has been the subject of more than 73,000 Borrower Defense to Repayment (fraud) claims, making Phoenix or 43 Education liable for as much as $1B-$2B in unrecoverable debt. That liability could grow as more student debtors are aware of the Borrower Defense to Repayment program. In the future, Phoenix (aka Idaho Global?) will have to battle in court and in the court of public opinion to minimize the damage to itself, 43 Education, and the University of Idaho.