CAUSES OF CONCERN:
(1) "Based on the draft rates, University of Phoenix programs representing approximately 16% of the University’s total degreed enrollment as of August 31, 2016 FAILED TO SATIFY EITHER OF THE TWO MNIMUM DEBT SERVICE-TO-EARNINGS RATIONS"
(2) "Programs that fail to meet both tests for two out of three consecutive years will be ineligible to participate in Title IV student financial aid"
(3) "The University intends to provide financial and other assistance to its students who are enrolled in programs that lose eligibility to participate in Title IV student financial aid due to application of the gainful employment regulations, in order to assist the affected students to complete their programs of study. The ultimate cost of this assistance cannot be predicted currently, but could be substantial, depending on the number of students who qualify and choose to participate"
SOURCE:
https://www.sec.gov/Archives/edgar/data/929887/000119312516776894/d300485d8k.htm