Aspen Group Announces 811 New Student Enrollments In Q2 FY'17; Surpassing Previous Quarterly Record By 31%

NEW YORK, Nov. 15, 2016 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCQB:ASPU), a nationally accredited online postsecondary education company (Aspen University), today announced the university achieved a record of 811 new student enrollments for the fiscal 2017 second quarter ending October 31, 2016, surpassing last quarter's previous record of 621 by 31%.  From a year-over-year perspective, new student enrollments increased 46%, from 557 to 811.

Aspen's Cost-Per-Enrollment (CPE) Continues to DeclineAspen's rolling six-month average CPE improved by 16% year-over-year, declining from $852 to $718. This is particularly noteworthy given the university increased marketing spending by 32% year-over-year.  On a sequential basis, Aspen's rolling six-month average CPE dropped from $759 to $718, a 5% improvement.

Aspen's marketing efficiency ratio (revenue-per-enrollment/cost-per-enrollment) increased sequentially from 9.2X to 9.7X, meaning that Aspen is now projecting to earn a 9.7X return on its marketing investments. Investors are encouraged to review the Company's most recent Form 10-Q for a further description of this projected ratio.  

Student Body New Class Starts Up 67% Y/O/YAspen's student body began 3,730 new classes during the fiscal 2017 second quarter, compared to 2,238 a year earlier, an increase of 67% year-over-year.  Additionally, the average tuition price for new class starts rose to $819 in Q2 FY'17, a 4% increase year-over-year from $786.

"Aspen is rapidly proving that a fully-online university can thrive without relying on federal financial aid as the predominant payment method for students. This quarter 59% of our new class starts were paid through a monthly payment method, up from 56% in the previous quarter, while our federal financial aid revenues dropped below 25%," said Chairman & CEO, Michael Mathews.  "This 'pay-as-you-go' business model is without question a critical ingredient to Aspen's rapid growth, in contrast to the rest of the sector that is principally suffering from growth stagnation," continued Mathews.