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UPDATE 1-Apollo Education revenue disappoints as enrollments decline

(Adds details, background, details on subpoena)

April 1 (Reuters) - Apollo Education Group, the owner of the University of Phoenix, reported lower-than-expected quarterly revenue as new enrollments declined 16.5 percent, sending its shares down more than 4 percent in extended trading.

The company also said it had received a subpoena from the U.S. Department of Education's Office of Inspector General, seeking information on marketing, recruitment and financial aid processing since 2007 at the university's centralized service center for the Northeast in Columbia, Maryland. (http://r.reuters.com/huj28v)

Apollo, which took a beating from the U.S. government's investigations in 2010 that showed high debt levels and low graduation rates, said degreed enrollment at its flagship University of Phoenix fell 16.8 percent.

The government has proposed regulations that could force for-profit colleges to revise course structures or risk losing aid if 30 percent or more students default on their loans.

Net income attributable to Apollo Education rose to $14.6 million, or 13 cents per share, for the second quarter ended Feb. 28 from $13.5 million, or 12 cents per share, a year earlier.

Excluding items, the company earned 28 cents per share.

Revenue fell 18.6 percent to $679.1 million, missing the average analyst estimate of $689 million, according to Thomson Reuters I/B/E/S.

Apollo also reiterated its full-year revenue forecast of $3.00 billion-$3.10 billion.

Apollo's shares closed at $35.16 on the Nasdaq.

(Reporting by Rohit T. K. and Sagarika Jaisinghani in Bangalore; Editing by Don Sebastian)