In its rush to welcome a private, for-profit university to Fredericton, the New Brunswick government is ignoring the dismal record of the school’s parent company, and putting students’ academic futures at risk, warns CAUT.

Meritus University is scheduled to be operational later this year, a “welcomed addition to the Fredericton business community,” according to Business Minister Greg Byrne.

CAUT executive director James Turk, who has expressed reservations about for-profit educational institutions, said Meritus will be neither good for business, nor post-secondary education in the community.

The university’s parent company, Apollo Group, a U.S.-based corporation that describes itself as “a leading provider of higher education programs for working adults,” was found guilty of fraud last January for misleading investors by not disclosing harsh criticism from the U.S. Department of Education of recruiting practices used by the University of Phoenix, which Apollo also owns.

With more than 190 campuses and learning centers in the U.S., Puerto Rico, Alberta and British Columbia, Phoenix is the largest privately-owned for-profit university in the U.S., and a ubiquitous online presence offering cyber-courses in such areas as business and management, criminal justice and security, human services and information technology.

According to a statement issued by Apollo in May, Meritus will offer a similar, but more-limited slate of online courses leading to bachelor’s degrees in business administration and information technology management and a master of business administration.

Although based in Fredericton, the school will disseminate online courses to “working professionals throughout Canada and abroad.”

Apollo clearly intends to model Meritus University closely on the same principles that guide Phoenix. The school’s mission, says Apollo, is to “foster relevant and innovative learning that meets the needs of diverse student populations, their employers and communities.”

“Governments should be doing more to financially support and strengthen our already established public universities and colleges, not opening the doors to private providers that offer a very narrow range of programs,” Turk said.

Alarmingly, the fraud charges against Apollo almost pale beside the long list of criticisms and complaints leveled at the University of Phoenix.

In recent years, the university has settled several claims, including one for $6 million by the U.S. Department of Education, following a ruling by government auditors that the university’s teaching schedule fell short of the minimum time required to qualify for financial aid.

In 2004, the university paid $9.8 million to the department to settle allegations it had violated laws prohibiting the payment of financial incentives to admission representatives.

The department has also ordered the university to pay $650,000 for failing to promptly refund loans and grants for students who withdrew, while a federal whistle-blower/false claims lawsuit filed in 2003, accusing the university of fraudulently obtaining hundreds of millions of dollars in financial aid, goes to trial next year.

And using the standard employed by the department, Phoenix’s overall graduation rate of 16 per cent, compared to the U.S. national rate of 55 per cent, ranks it among the lowest in the country.

Additionally, a barrage of complaints by current and former students point to too-light course-loads, a constantly changing faculty composed largely of part-time teachers, and instructional shortcuts that have prompted corporations like Intel to reconsider paying employee tuition for University of Phoenix courses and hiring its graduates.

“I fail to understand why the New Brunswick government looks at Meritus as good for the province, either from an educational or business perspective,” Turk said. “Who exactly will benefit from this deal, other than Apollo’s shareholders?”

According to Apollo president Brian Mueller a growing number of students are employed professionals seeking new skills and knowledge and Meritus will deliver “academic programs that are competitively-priced and market-relevant.”

He also said that the province was chosen because of its positive regulatory and business environment.

“Clearly, both the New Brunswick government and Apollo Group are excited about Meritus University not because it will be providing a comprehensive education experience, but because it’s good business to provide cheap courses,” said Turk.

“But in the long term, maintaining a top-notch post-secondary education system cannot possibly occur without taking into account the needs of all students and teachers within the context of the wider community and setting. Meritus doesn’t do that.”