The investigative journalism site Reveal exposed that the school was paying the military for exclusive base access, held recruiting events promoted as resume workshops and handed out challenge coins with military insignia used without permission.
Last year, the University of Phoenix received $20 million in military tuition assistance.
In a written response from the DOD, spokesman Maj. Ben Sakrisson told Reveal that the university has been placed on probationary status. Current students on tuition assistance will continue their programs. The University of Phoenix will not be permitted to recruit military members on bases and new or transfer students will not be granted DoD financial help.