One of the largest private Universities, University of Phoenix reputation is fraying as prominent educators, students and some of its own former administrators say the relentless pressure for higher profits, at a university that gets more federal student financial aid than any other, has eroded academic quality.

"Their business degree is an M.B.A. Lite," said Henry M. Levin, a professor of higher education at Teachers College at Columbia University. "I've looked at their course materials. It's a very low level of instruction." 

 

The university could be forced to repay hundreds of millions of dollars if it loses the lawsuit. It asked the Supreme Court last month to review the appellate ruling, arguing that an adverse outcome in the lawsuit could expose it to "potentially bankrupting liability." 

 

This article appeared in the February 11, 2007 edition of the New York Times.