NEW YORK, Feb. 19, 2015 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCBB: ASPU ), a nationally accredited online postsecondary education company (Aspen University), today announced that since the BSN accreditation announcement 100 days ago, new student enrollments are on pace to increase 81% year-over-year in the current quarter ending April 30, 2015. A year ago, in the quarter ending April 30, 2014, Aspen achieved 235 new student enrollments, while in the current quarter ending April 30, 2015, Aspen is currently on a pace to reach 426 new student enrollments. This positive trend was apparent beginning in January 2015.
Aspen's average lead-to-enrollment timeframe is 90 days. Although the BSN Internet advertising campaign began only 100 days ago, Aspen has already enrolled 101 new BSN students in that timeframe, and is on pace to enroll an average of at least 50 BSN students per month.
Aspen's innovative debtless education solution offers BSN students the ability to pay their tuition simply by making monthly payments of $250, interest-free, over 39 months. Since this ground-breaking offer was launched to RNs across the U.S. 100 days ago, 79% of the newly enrolled BSN students have selected a monthly payment method. At this pace, by the end of this calendar year, Aspen projects that the majority of its student body will be utilizing monthly payment methods, which would most certainly be a first in higher education history.
Revenue Implications
Aspen averaged 84 new student enrollments per month in calendar year 2014. Aspen's average revenue per new student enrollment is approximately $6,000, earned over 3 years. In other words, Aspen's 1,008 new student enrollments in 2014 will translate to revenues of approximately $6 million, earned over three years. Should the pace of enrollments continue to rise by 81% year-over-year in calendar year 2015, that would equate to 1,704 new student enrollments with a revenue value of approximately $10.2 million, earned over three years. We expect the current quarter increases in new student enrollments to drive an acceleration of growth on the top line starting in the current quarter ending April 30, 2015, given GAAP revenue recognition guidelines of booking revenue ratably over the length of each student's 10-week course.
"Achieving CCNE accreditation for the high-demand BSN degree program, combined with our unique debt-free approach to higher education, we believe will be the key catalysts for growth acceleration in the coming quarters based on our current trend," said Chairman & CEO, Michael Mathews.
About Aspen Group, Inc. (OTCBB: ASPU )
Aspen Group, Inc. is an online postsecondary education company. Aspen University's mission is to offer any motivated college-worthy student the opportunity to receive a high-quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality education experiences taught by top-tier faculty – 67 percent of our adjunct faculty hold doctoral degrees. To learn more about Aspen University, visit www.aspen.edu .
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements including projections regarding trends and continued growth in our new student enrollments, projected revenues from new student enrollment, anticipated growth in revenue and expectations with respect to a majority of students utilizing the monthly installment plan.
The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include student attrition beyond what the Company has historically experienced and if the trend of increased new student enrollment does not continue. Further information on our risk factors is contained in our filings with the SEC, including the Prospectus dated October 14, 2014. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Media Contact: Aspen Group, Inc. Michael Mathews, CEO 914-906-9159
