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The Chronicle THIS PAGE HAS BEEN APPROVED BY: Section Editor:_____ Copy Editor:_____ Jasmine:_____ Jeff Selingo:_____ Scott Smallwood:_____ Display _____ Photo credit _____ Page fit by: ___________________ Editorial: ___________ THE CHRONICLE of Higher Education ® February 11, 2011 • $3.75 chronicle.com Volume LVII, Number 23 College Giving HUNTSVILLE: One Year Later Has Yet to Recover From Recession Wealthy donors pledge lowest total in a decade By Kathryn Masterson lthough the recession of- ficially ended more than A a year ago, private giving to colleges and other charities re- mained depressed in 2010, two sur- veys have found. After a steep drop-off in 2009, donations to higher education dur- ing the 2010 Top Money fiscal year rose Raisers, just 0.5 percent, 2009-10 the annual Vol- untary Support of Education 1 Stanford U. $598,890,327 Survey found. The report was released last CHRISTINE PRICHARD FOR THE CHRONICLE 2 Harvard U. week by the Joseph Leahy of the U. of Alabama at Huntsville is struggling to recover his teaching and research skills, with the help of his wife, Virginia. $596,963,000 Council for Aid to Educa- The Johns tion. Adjusted 3 Hopkins U. for inflation, $427,593,283 total giving ac- A Professor’s Long Road Back Source: Council for tually declined Aid to Education slightly, a clear Shot in the head at a department meeting, Joseph Leahy is relearning his job signal that the economic recovery that colleges have been hoping for has not yet By Robin Wilson ciate professor of microbiology. member the events at all.” arrived. “It’s funny because it’s just a dark More difficult for Mr. Leahy One reason might be that wealthy ach time he goes to room,” he says of the place where has been resuming his career. donors pulled back their charitable the biological-sciences Amy Bishop, then an assistant The bullet severed the optic giving. The 54 most generous do- E depart ment at the Univer- professor, is accused of opening nerve in his right eye before shat- sity of Alabama at Huntsville, fire during a faculty meeting last tering his jaw and then lodging nors gave a total of $3.3-billion to O Rebuilding the faculty: all nonprofit organizations last year, Joseph G. Leahy walks by the February —killing three of Mr. in his neck near his jugular vein. A message on campus conference room where one of Leahy’s colleagues, shooting him He credits his colleagues with the lowest total in a dec ade, accord- captures the shattered his colleagues tried to kill him. in the head, and wounding two helping to save his life by stanch- ing to a survey released this week biology department’s But the proximity holds no others. “It’s kind of a big nothing ing the blood from his head with by The Chronicle of Philanthropy. comeback: Page A7 One bright spot for colleges: Nearly horrors for Mr. Leahy, an asso- to me since right now, I don’t re- Continued on Page A10 half of the 65 gifts of $5-million or more from that group went to high- er education. Over all, American colleges and universities raised $28-bil- Fast-Growing U. of Phoenix Calculates a More Careful Course lion in 2010, the same amount they brought in during 2006, the VSE re- By Goldie Blumenstyk largest private university not only put in mo- of this 438,000-student institution. port said. While that finding is most tion an overhaul of what had come to be seen The moves, orchestrated from its headquar- likely a sobering one for institutions Phoenix as its grow-at-any-cost admissions practices. ters here, and from corporate outposts like San whose expenses and ambitions have n the fall of 2009, after closing the It also ended a compensation schedule tied Francisco, where the university has assembled grown since then, college leaders books on yet another banner year of en- a team of Silicon Valley veterans and comput- may take solace in the fact that fund rollment growth, and with its parent com- New Student Enrollment Drops er scientists to create a cutting-edge electronic I Total new students over the past eight quarters raising did not decline further. Last pany’s stock climbing toward a five-year high course platform, are part of a top-down cam- year’s flat results followed a year of $90 per share, the University of Phoenix be- 120,000 80,000 56,500 paign led by a team of a half-dozen executives, that showed an 11.9-percent drop, gan to question fundamental pieces of the very 90,000 all of whom have joined its $5-billion parent the sharpest in the survey’s 50-year formula that had fueled its years of success. 60,000 company within the past four years. history. Even as its executives celebrated, recalls 30,000 “We are investing in academics like no other The survey, which counts cash one, they were uneasy. A feeling was building 0 higher-education company can do,” says Joseph gifts and includes about 1,000 col- “in the pit of everyone’s stomach: That felt too Feb. May Aug. Nov.Feb. May Aug. Nov. L. D’Amico, who as president of Apollo Group leges, found that the percentage of 2009 2010 good.” Source: Apollo Group Inc. Inc. oversees the campaign it calls “Reinvent- alumni who gave continued to de- From that “moment of truth,” as that execu- ing education, again.” The goal, he says, “is to cline, dropping to a record low of tive, Robert W. Wrubel now describes it, Phoe- to enrollment, began a required orientation take our business to a new level.” 9.8 percent. The average alumni gift nix quietly began what it calls a major change program for inexperienced students, and in- Last month Apollo provided The Chronicle a was also down. of direction. stituted a host of other reforms in market- behind-the-scenes (but by no means unfettered) Continued on Page A17 Out of the public eye, North America’s ing and nearly every other important facet Continued on Page A13 This week’s news briefing: Page A3 l The Chronicle Review: Section B l 294 job opportunities: Page A38 The Chronicle of Higher Education • February 11, 2011 A13 MONEY & MANAGEMENT Fast-Growing U. of Phoenix Calculates a More Careful Course Continued From Page A1 catered to younger, less academically pre- The moves are taking a toll. In January, cated, 24-hour-a-day operation. Phoenix still look at some of the new recruiting techniques, pared students. The company set tuition for Apollo announced that the number of new relies on a force of more than 8,700 enroll- educational moves, and marketing tactics be- the two-year-degree program low enough students enrolling in the previous quarter had ment, finance, and academic counselors— ing used to reshape the University of Phoe- that students could use federal loans—and dropped by 42 percent from a year earlier. It about two-thirds of them in admissions—to nix. if they were financially needy enough, Pell predicted that the slowdown would very like- attract and keep students and advise them on The timing of the changes, and no doubt Grants—to cover most of their costs. Phoe- ly continue for at least a year. The news sent financial aid. (Although one-sixth Phoenix’s the company’s willingness to share the de- nix now gets nearly 90 percent of its revenue its already depressed stock price to $36, one size, the for-profit American Public Universi- tails, is hardly coincidental. This most sig- from those federal sources, the maximum al- of its lowest levels in five years. It remains to ty says it has just 30 enrollment counselors.) nificant re-engineering of Phoenix in its lowed by law. That includes more than $1-bil- be seen whether investors stick with the com- What’s changed is how Phoenix is selling. 35-year-history comes as it and the sprawl- lion in Pell Grants last year, the most of any pany, and whether the “new” University of In September the university put in place a ing $20-billion for-profit higher-education university. Its rate of student-loan defaults Phoenix, even with all of its marketing mus- new compensation system for its enrollment industry it helped to create face the greatest has also risen markedly, largely among Axia cle, can hold its own against the many non- and financial-aid counselors, eliminating any political, financial, and public-relations pres- use of enrollment and retention goals in de- sures of their existence. New laws that make termining salaries. Requirements that enroll- the colleges more accountable for some stu- ment advisers make 65 to 85 calls a day and dents’ inability to repay their federal loans, The university has put in place a new compensation system put in four hours of “talk time” per shift have intensifying scrutiny from news media and for its counselors. Instead of filling enrollment and retention been replaced with customer-service training government on aggressive recruiting, grow- based on “emotional intelligence.” Apollo ex- ing legal activism on the part of dissatisfied goals, they now value “emotional intelligence.” ecutives decline to share full details on the former students, and collapsing stock prices new techniques but say the change is meant are prompting the companies to shift gears to encourage behaviors that will allow the on the problem-laden growth strategies that students, which under the tougher laws enact- profit and for-profit colleges now competing advisers to make personal connections with have fueled the industry for half a decade.
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