Apollo Education Group, which owns the University of Phoenix, disclosed in a filing Monday afternoon that the Department of Education will review the for-profit college's financial aid practices.
The review is not unprecedented for the country's largest for-profit college, which has faced several other reviews in previous years. But the company's stock fell roughly 6.2 percent in after-hours trading, a sign of the industry's skittishness about Department of Education probes, following the collapse of another for-profit college earlier this month.
The Department of Education choked off Corinthian College's access to federal student loan money in June after the company failed to produce documents it had requested. That led to the near-bankruptcy of cash-strapped Corinthian and an eventual agreement with the Department for the company to close or sell all of its 107 campuses.
The review of the University of Phoenix's financial aid practices is expected to begin August 4.