For-profit college enrollment is rising. The University of Phoenix — once the largest college in the country — reported average degree-seeking enrollment of 85,600 students in fiscal Q1 2026, up 4.1% year over year, with quarterly revenue of $262 million. The turnaround follows the Trump administration's reversal of multiple Biden-era oversight rules that had specifically targeted for-profit institutions.

A Sector That Nearly Collapsed

The University of Phoenix once enrolled nearly 500,000 students at its peak. Then came federal investigations, a $191 million settlement with the Federal Trade Commission in 2019 over allegations that ads falsely suggested the school had job placement partnerships with Microsoft and AT&T, and years of tightening federal oversight. By the early 2020s, enrollment had declined for more than 15 years straight.1

That trajectory is reversing. Phoenix Education Partners, the parent company of the University of Phoenix, reported fiscal Q1 2026 results that beat analyst expectations: 85,600 average total degree-seeking students (up from 82,200 a year earlier), $262 million in net revenue (up from $254.7 million), and an adjusted EBITDA margin of 28.7%.2

Employer-affiliated enrollment — students whose companies help pay tuition — now accounts for about 34% of the total student body, up from 31% a year ago.

+4.1% — University of Phoenix enrollment growth, Q1 FY2026 — 85,600 average degree-seeking students (up from 82,200). Net revenue: $262 million.

What the Trump Administration Changed

The Biden administration had spent four years adding accountability requirements specifically targeting for-profit colleges. The Trump Department of Education began dismantling that framework in January 2026.

Key reversals include:

  • Equal treatment rule: The Education Department announced new accountability rules will treat for-profit, nonprofit, and public colleges equally, ending what the agency called "selective enforcement based on tax status and politics" under prior administrations.1
  • Personal liability rule eliminated: A Biden-era regulation required all for-profit college owners to sign agreements accepting personal financial liability for potential student harm or fraud. The Trump administration cancelled that rule in January, making it an optional measure unlikely to be used.
  • Gainful employment rules softened: Oversight requirements that flagged for-profit programs where graduates' debt levels were high relative to their earnings have been scaled back.

The for-profit sector is reading these changes as an opening. Multiple for-profit operators told reporters they expect enrollment to grow faster than it otherwise would, and analysts covering Phoenix Education Partners noted a high probability of accelerating growth under the current regulatory environment.1

Why Students Should Still Be Careful

A lighter regulatory environment doesn't mean the problems that triggered those regulations have been fixed.

The for-profit sector has a documented history of misleading enrollment practices, inflated job placement claims, and programs that leave graduates with debt they can't service. Those practices happened under the same light-touch regulatory environment that existed before 2010.

Enrollment growth at a for-profit school doesn't tell you whether graduates are getting jobs, paying off their loans, or earning enough to make the degree worthwhile. Always verify outcomes data before enrolling — regardless of what the current administration is or isn't enforcing.

The 2023 gainful employment data showed that a significant share of for-profit programs produced graduates who earned less on average than workers who never attended college at all. The reversal of federal enforcement doesn't change those underlying outcomes — it just means the government is less likely to act on them.

What to Check Before Enrolling

If you're considering a for-profit college — or any school where you're unsure about outcomes — here's what to actually verify:

Graduation rate. Many for-profit schools have graduation rates below 30%. A school can't help you if you don't finish. Check the college's graduation rate on the College Scorecard.

Accreditation status. Regional accreditation is the gold standard. National accreditation (used by many for-profits) is accepted less widely by employers and rarely allows credits to transfer to a regionally accredited school. If you're considering transferring later, this matters enormously.

Median earnings after graduation. The College Scorecard shows median earnings for graduates 2–4 years after leaving school. If median earnings are below $30,000 for a program that costs $30,000 per year, the math doesn't work regardless of what the recruiter says.

Cohort default rate. A high percentage of former students defaulting on loans is a strong signal that the degree isn't generating enough income to support repayment.

Before enrolling at any for-profit school, search the Department of Education's College Scorecard at collegescorecard.ed.gov. Filter by school, program, and look at: median debt, median earnings, and the share of students who are paying down their loans. A school whose graduates are earning less than $25,000 per year is a financial risk — whatever the marketing says.

When a For-Profit Might Actually Make Sense

Not all for-profit colleges are the same, and the sector isn't uniformly bad. Some programs — especially employer-affiliated ones, short-term workforce credentials, and healthcare training programs at schools with strong regional employer relationships — produce graduates with good outcomes.

Working adults considering flexible, online degrees can also find legitimate options among for-profits. But the same logic applies: check graduation rates, accreditation, and outcomes data, not just price and flexibility. Our guide on best colleges for working adults covers how to evaluate online programs regardless of school type.

If you're weighing a for-profit program against a community college pathway, the comparison almost always favors community college on cost and credit transferability. See community college transfer guide for how that path works.

For students comparing different types of post-secondary credentials, college vs. trade school breaks down when a vocational path makes more sense than a four-year degree.

The Broader Warning Sign

For-profit college enrollment rising at the same moment that federal oversight of the sector is being rolled back is a combination worth watching closely. The last time that combination existed — mid-2000s to early 2010s — it ended with the largest student loan fraud settlements in U.S. history and hundreds of thousands of students with worthless credentials and unmanageable debt.

History doesn't repeat automatically. But students evaluating for-profit options in 2026 are making that decision in a regulatory environment with fewer guardrails than existed a year ago. The responsibility for due diligence shifts more to the student — which means doing it.

Is the University of Phoenix a legitimate accredited school? Yes. It holds regional accreditation from the Higher Learning Commission. Credits are more widely transferable than at nationally accredited for-profits. The school's regulatory history doesn't change its current accreditation status, but students should verify program outcomes before enrolling.

What did the Trump administration change about oversight? In January 2026, the Education Department announced it would apply the same accountability rules to for-profit, nonprofit, and public colleges, ending targeted enforcement. It also cancelled a Biden-era rule requiring for-profit owners to accept personal liability for student harm.

How do I tell if a for-profit college is worth it? Check three things on the College Scorecard: graduation rate, median earnings of graduates two to four years after enrollment, and the share of former students actively paying down their loans. Compare those numbers to equivalent programs at community colleges and public universities.

Can I transfer credits from a for-profit to a public university? It depends on accreditation. Nationally accredited schools (common among for-profits) have very limited credit transfer compatibility with regionally accredited public colleges. Always ask the receiving institution before assuming credits will transfer.

Footnotes

  1. Washington Post / Detroit News. (2026, March 10). For-profit colleges, once accused of duping students, hope to rebound under Trump. https://eu.detroitnews.com/story/news/education/2026/03/10/for-profit-colleges-once-accused-of-duping-students-hope-to-rebound-under-trump/89083580007/ ↩ ↩2 ↩3

  2. Phoenix Education Partners, Inc. (2026, January). Reports first quarter fiscal year 2026 results. Yahoo Finance / Business Wire. https://finance.yahoo.com/news/phoenix-education-partners-inc-reports-211200612.html ↩