Feeling pressured to better compete in the online education market — especially as Arizona State University broadened its virtual options — University of Arizona leaders recast Ashford as the University of Arizona Global Campus, or UAGC.
Administrators pledged to rehabilitate UAGC and abandon the exploitation that landed the former Ashford in legal hot water. UAGC, as its president said in 2022, is “well-positioned to provide adult learners with affordable college credentials that can better prepare them for careers in a rapidly evolving global economy.”
But beneath the rebranding efforts, problems remain. The University of Arizona has spent massively on marketing UAGC, as an audit that consultancy EY conducted last year revealed, a hallmark tactic of predatory for-profit institutions that dress up their junk degrees as prestigious offerings.
UAGC runs extensive and expensive ad campaigns on Google and Facebook, yet fewer than 1% of those reached enroll. This amounts to the university paying $11,521 for every student enrolled from those campaigns, the audit shows.
For context, this is almost as much as the University of Arizona’s in-state tuition and fees per student in the 2023-24 academic year, which federal data estimates to be about $13,000.
And one higher ed consultancy, RNL, found that in 2022, the median cost of recruiting an undergraduate student, minus personnel expenses, was only $1,652 for a four-year private college and $282 at a four-year public institution (though proponents of online education argue this is comparing apples to oranges).
But ultimately, UAGC’s investment has not improved enrollment. It continues to bleed, as it did in Ashford’s later days, dropping from about 107,000 students in fiscal year 2015 to 51,000 in fiscal year 2023.
Criticism from some of the University of Arizona’s faculty has also erupted. In the waning days of 2024, Nolan Cabrera, a professor at the university’s Center for the Study of Higher Education, wrote a public warning to students, urging them not to enroll in UAGC.
Cabrera told New America in a later interview he went public with his criticisms to protect students — and the University of Arizona’s reputation. UAGC, he said, is only hurting students with poor-quality programs, draining resources and sullying its standing as a top-class, R1 institution.
Blake Naughton, UAGC’s vice provost for academic affairs, teaching, and learning for online initiatives said in an emailed statement that “accreditors, government agencies, and other external reviewers” recognize “UAGC’s commitment to the quality of its degree programs.”
“UAGC has developed an innovative model that is validated through reaffirmations of quality by UAGC’s institutional and programmatic accreditors, which includes Quality Matters certification representing the gold standard in online courses, and enthusiastic partnerships with businesses and military employers,” Naughton said. “Further, UAGC faculty are leaders in the scholarship of online teaching and learning, regularly publishing and presenting on the efficacy of its ‘quality at scale’ model.”
The Creation of UAGC
Those inside and out of University of Arizona — state officials, faculty, college students and their advocates — were immediately skeptical of UAGC’s potential quality and value when the university acquired Ashford in 2020. The deal was a complex one that involved the University of Arizona creating a new nonprofit entity, which bought Ashford for $1. In return, UAGC would provide almost 20% of annual tuition revenue to Ashford’s former parent company, Zovio, though that arrangement later fell apart in 2022.
Before the acquisition, Ashford followed the blueprint of one of the most notorious for-profit colleges in American history: the University of Phoenix. Andrew S. Clark — an executive who contributed to the University of Phoenix’s rise — and the company he later worked for, Bridgepoint, replicated deceptive practices around credit transfers, financial aid, and recruitment at Ashford.
In 2017, California’s attorney general alleged Ashford misled prospective students about their chances of securing financial aid, the cost of attendance, the transferability of credits, and how well its programs prepared them for certain careers. The attorney general also accused it of deceiving investors and the public by exaggerating the percentage of working alumni who said their degree helped them in their current jobs.
This complaint was still unresolved by the time University of Arizona acquired it in 2020.
In 2022, the court ruled against Ashford and Zovio. The judge in the case was persuaded by estimates that Zovio made roughly 1.2 million misleading calls to potential students from March 2009 to April 2020.
The University of Arizona painstakingly crafted a public relations campaign to try to cleave UAGC’s reputation from Ashford’s. This was despite widespread concerns among its faculty and staff about Ashford, Cabrera said in an interview.
The administration never truly responded to those fears that Ashford was still peddling poor-quality education, he said. In fact, negotiations surrounding Ashford were so secretive that University of Arizona representatives who were involved with them signed non-disclosure agreements, obfuscating details of the deal, Cabrera argued. (The University of Arizona has said because Zovio was a publicly traded company, the institution “was required to undertake its work on a confidential and ‘need to know’ basis.”)
“You know the old adage, ‘you get what you pay for’?,” Cabrera said, referring to the $1 price tag of the acquisition. “That should tell you everything you need to know.”
UAGC has maintained an anemic graduation rate, only reaching 15% to 20% after the University of Arizona’s acquisition, according to the audit. The University of Arizona’s graduation rate stands between 60% to 70%. The retention rate of full-time students has also only improved modestly, from 24% in 2019 to 30% in 2022, according to federal data.
Mitch Zak, a University of Arizona spokesperson, said in a statement that it and UAGC have different academic models, thus their graduation rates aren’t comparable.
“The majority of UAGC students are working adults and military service members with varying priorities and responsibilities, which results in their taking fewer courses per year than traditional U of A students,” Zak said. “Non-traditional online students nationwide are not expected to graduate in the same timeframe as traditional university undergraduates.”
Recent news reports have also detailed how, like Ashford’s graduates, some UAGC students have said they can’t find sound jobs after leaving and alleged that the institution misled them about the value and cost of their degrees.
Cabrera said the University of Arizona’s leaders have not prioritized improving student outcomes, but rather an online education arms race and particularly beating out Arizona State, reflecting the longstanding rivalry between the two most prominent public universities in the state.
Cabrera said the two institutions are in constant competition — in public college rankings, like U.S. News & World Report’s, in enrolling more students, and other peripheral aspects of their academics, such as who employs more Nobel Prize laureates.
But if the University of Arizona’s leadership was so worried about its reputation, it shouldn’t have scooped up Ashford, Cabrera argued. Its association with Ashford and its shoddy education demeans the value of a University of Arizona degree, too, he said.
Zak pushed back against Cabrera’s allegation, saying that “priority is to ensure that UAGC is meeting the needs of its students, most of whom could not access traditional higher education.”
He also separately in his statement criticized Cabrera, saying the professor is not an expert in online education and did not reach out to UAGC leaders or faculty “to learn more about the differences between the U of A and UAGC as well as the complexities associated with providing access to higher education to working professionals.”
Major Marketing Costs
Amid this firestorm, UAGC’s enrollments continue to slip.
Zak argued this decline “was expected and planned for during the transitional period” as the institution works to integrate the former Ashford into the University of Arizona. He said UAGC is trying to lift enrollment, including through programs that help stopped out students return to college.
Still, the enrollment downturn raises questions in particular about the efficiency of its marketing efforts.
While the analysis doesn’t reveal the full extent of UAGC’s marketing splurge, it likely devotes hundreds of millions of dollars to it, based on figures in the EY audit. A similar institution to UAGC, the University of Maryland Global Campus, also dropped $500 million on just two six-year advertising contracts, according to a separate audit.
UAGC is investing significantly in lead generation, a strategy colleges have tried for more than a decade. They pay for advertisements to appear on webpages, particularly social media platforms, that typically summarize a program and also try to entice prospective students to click a new link for more information.
That ad takes prospects to a separate webpage, where they can fill in their name and other information, becoming a “lead” that a college can try to convince them to enroll.
Yet UAGC’s use of lead generation has been astonishingly fruitless, the audit shows.
Fewer than 1% of students reached through UAGC’s top five paid marketing sources, including Google and Facebook, actually enroll. The numbers concerning Facebook are particularly bleak — only 0.5% of prospective students end up enrolling at UAGC after clicking an advertisement on the platform. The auditor said this means it effectively costs the university more than $34,000 in marketing dollars just for one person to enroll from Facebook.
Even UAGC’s most successful lead generation source — Google search ads — converted just 3% of prospects, with each enrollment costing more than $7,500.
These figures are even more staggering considering UAGC pays to find 85% of its prospects, according to the audit. By contrast, Arizona Online — the university’s self-created online program, which still operates, in parallel to UAGC — buys just 50% of its student leads.
Zak said that UAGC has since “refined” its marketing to “prioritize efficiency and effectiveness,” but did not go into greater detail.
“UAGC has implemented a targeted approach in alignment with its mission of serving non-traditional learners,” Zak said. “UAGC is focused on retention and success and focuses on students who are most likely to benefit from a flexible and supportive learning environment. UAGC leverages data analytics, audience segmentation, and advanced tracking mechanisms to help improve conversion rates and reduce marketing costs.”
He later said that UAGC serves nontraditional students like working adults, military members and first-generation college attendees.
“Reaching those students in a competitive marketplace requires a different approach than traditional four-year universities,” Zak said.
The University of Arizona has faced budget problems broadly and last year said it had a $177 million budget deficit, which it has since reduced significantly.
But for all the university’s publicity efforts around UAGC, prospective students recognize Arizona Online as part of the institution’s brand, more so than UAGC, the audit said. Maintaining both platforms has actually spurred “market confusion,” according to the audit.
To remedy this, the University of Arizona has angled to integrate UAGC and Arizona Online, and Zak pointed to a university statement last year that said the audit findings validate this merger.
Still, this “confusion” underscores broader marketing challenges, like relying heavily on lead generation, a strategy UAGC has leaned into despite the fact that experts have said it’s inefficient to boost enrollment.
In part, that’s because institutions don’t recognize that students won’t make life-altering choices, like where to attend college, based on what’s essentially a pop-up ad, two marketing experts wrote in a 2022 essay.
“Prospective students prudently take their time researching your programs’ offerings in addition to many others,’” they wrote. “They are not naïve, impatient or easily persuaded by glitzy ads and copy. They spend many months researching and deliberating.”
Worse, lead generation can be used for nefarious or even predatory recruitment efforts. Some lead generation companies, for instance, have caught consequences from the Federal Trade Commission, particularly those that target current and former military members.
What To Do Now?
Thus far, the University of Arizona Global Campus is a failed experiment, Cabrera said. He was inspired to publish his concerns about UAGC publicly after students enrolled in its programs began to reach out to him.
Students were distressed. They told him in emails and direct messages on social media that UAGC faculty in education programs couldn’t guide them properly. He said he lost count of how many students contacted him — he estimated more than 20 over an 18-month period.
“For all the political bickering, real students are getting hurt, real students getting harmed here,” Cabrera said. “They’re making a bet, but students are getting hurt in the process.”
The University of Arizona declined to comment on the UAGC students who contacted Cabrera. UAGC faculty later wrote a public rebuttal to Cabrera, arguing his piece was based on his “rather than on facts and thus lacked the academic rigor of factual data from credible sources.”
But the UAGC faculty piece did not refute specifically any data Cabrera cited, including numbers from the EY audit.
In Zak’s emailed statement, he said UAGC students “have access to academic support teams, career services, student access and wellness support teams, and a combination of tools, technology, and guidance to help them progress.”
Cabrera remains unconvinced.
He said the University of Arizona’s leaders have not fulfilled their promise to purge the educational sins of Ashford. The reality is that enrollment continues to plummet, while UAGC’s exorbitant spending on lead generation, with little return, highlights a systemic issue: UAGC, Cabrera said, has seemingly prioritized its push for new students over reforming Ashford’s remnants, which is still making headlines.
This month, the U.S. Department of Education announced it would cancel $4.5 billion in loans for 261,000 students who attended Ashford. And last year, the Education Department discharged $72 million in loan obligations for more than 2,300 former Ashford students.
In light of some of the continued problems, the University of Arizona should reassess its fundamentals of online education. It should prioritize meeting the core principles of academic quality and comprehensive student support over marketing its new venture. A stronger focus on student needs would drive more meaningful outcomes and enhance the university’s reputation in the online education space.
As Cabrera suggested, without a realignment of priorities, UAGC risks being an expensive endeavor with little impact. Its reliance on extensive marketing campaigns, like flashy Facebook ads, may eventually draw attention but will struggle to make up for the gaps in delivering long-term value to students.
[Editor's note: This article originally appeared on Republic Report.]
