Bridgepoint Education
Encyclopedia
Bridgepoint Education is a San Diego, California
-based publicly held, for-profit education services holding company which owns for-profit, online and land-based Ashford University
and University of the Rockies
.
. In September 2007, Bridgepoint obtained the Colorado School of Professional Psychology, changing its name to University of the Rockies
.
In 2008, Bridgepoint Education was named the fastest-growing private education company in the United States, as well as the fastest-growing private company in San Diego by Inc. Magazine.
In 2010
, it became the title sponsor of the Holiday Bowl
postseason college football
game.
In March 2011, Bridgepoint Education was the subject of Senatorial hearings by the Health, Education, Labor, and Pensions Committee.
The stock of Bridgepoint Education fell the most in almost five months when the misuse of federal student aid was first publicly disclosed in 2009. When the official results were released in 2011, Senator Tom Harkin
said this audit "reveals the same troubling pattern of for-profit colleges
' taking advantage of students and taxpayers." The Department of Education has not yet responded to the findings.
Senator Harkin took issue with the fact that despite such growth of the company, student success was lacking. According to information provided by Senator Harkin in the committee hearing, 63% of students who enrolled at Ashford University during the 2008-2009 school year withdrew before completion of their perspective program. Senator Harkin pointed out that Bridgepoint recorded more than $216 million in profits in 2010; of which 86.5 percent of its revenues come from federal funds. In reference to these figures, Senator Harkin is on record as saying, "In the world of for-profit higher education, spectacular business success is possible despite an equally spectacular record of student failure, Bridgepoint is a private company, but it is almost entirely dependent upon public funds ... I think this is a scam, an absolute scam."
Kathleen Tighe, inspector general with the U.S. Department of Education, testified at the hearing that in an audit of Ashford, she discovered Ashford was improperly distributing student aid to students. "Seventy-five percent of the improper disbursements to students in our sample were made to students who never became eligible," Tighe said. For the 2006-2007 award year during which the audit was performed, it is estimated Bridgepoint hadn't returned $1.1 million in improperly obtained student aid to the federal government. Tighe said on a recent report she'd seen that Bridgepoint was "sitting on" $130 million in total credit balances.
Due to the ongoing Office of Federal Student Aid (FSA) proceedings, and in order to preserve due process, Bridgepoint chose not to send executives to the HELP committee hearing while engaged in negotiations with FSA.
Rather, Bridgepoint published a summary of responses called Bridgepoint Education Transparency.
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
-based publicly held, for-profit education services holding company which owns for-profit, online and land-based Ashford University
Ashford University
Ashford University is a private, for-profit university located in Clinton, Iowa. It is the largest educational holding of Bridgepoint Education...
and University of the Rockies
University of the Rockies
University of the Rockies is a private, for-profit graduate school located in Colorado Springs, Colorado. As of February 2011, the university offers three different Master of Arts degrees: Master of Arts in Human Services, Master of Arts in Organizational Development and Leadership, and Master of...
.
History
Bridgepoint Education was founded in 1999. It purchased The Franciscan University of the Prairies in 2005 and changed its name to Ashford UniversityAshford University
Ashford University is a private, for-profit university located in Clinton, Iowa. It is the largest educational holding of Bridgepoint Education...
. In September 2007, Bridgepoint obtained the Colorado School of Professional Psychology, changing its name to University of the Rockies
University of the Rockies
University of the Rockies is a private, for-profit graduate school located in Colorado Springs, Colorado. As of February 2011, the university offers three different Master of Arts degrees: Master of Arts in Human Services, Master of Arts in Organizational Development and Leadership, and Master of...
.
In 2008, Bridgepoint Education was named the fastest-growing private education company in the United States, as well as the fastest-growing private company in San Diego by Inc. Magazine.
In 2010
2010 in sports
2010 in sports will describe the year's events in world sport.-January:* Alabama defeats Texas 37–21 in the 2010 BCS National Championship Game at the Rose Bowl in Pasadena, California, thereby claiming the 2009 National Championship in College Football....
, it became the title sponsor of the Holiday Bowl
Holiday Bowl
The Holiday Bowl is a post-season NCAA-sanctioned Division I-A college football bowl game that has been played annually at Qualcomm Stadium in San Diego, California, since 1978. Beginning with the 2010 playing the bowl will officially be known as the Bridgepoint Education Holiday Bowl after...
postseason college football
College football
College football refers to American football played by teams of student athletes fielded by American universities, colleges, and military academies, or Canadian football played by teams of student athletes fielded by Canadian universities...
game.
In March 2011, Bridgepoint Education was the subject of Senatorial hearings by the Health, Education, Labor, and Pensions Committee.
Controversy
In May 2008, the U.S. Department of Education's Office of Inspector General (OIG) audit services division commenced a compliance audit of Bridgepoint-owned Ashford University covering the period March 10, 2005, through June 30, 2009. The OIG audit reached the following conclusions:| Audit focus | Audit result |
|---|---|
| Compensation policies and practices relating to enrollment advisers | Rewarded recruiters based on their success in securing enrollments |
| Calculation, timeliness, and disbursement accuracy of Title IV Title IV Title IV of the Higher Education Act of 1965 covers the administration of the United States federal student financial aid programs.... program funds |
Improperly retained at least $1.1-million during the 2006-7 period |
| Student Authorizations to retain credit balances | Kept credit balances without the proper authorization |
| Maintenance of supporting documentation for a student's leave of absence | Took too long to return money awarded to students who withdrew |
The stock of Bridgepoint Education fell the most in almost five months when the misuse of federal student aid was first publicly disclosed in 2009. When the official results were released in 2011, Senator Tom Harkin
Tom Harkin
Thomas Richard "Tom" Harkin is the junior United States Senator from Iowa and a member of the Democratic Party. He previously served in the United States House of Representatives ....
said this audit "reveals the same troubling pattern of for-profit colleges
For-Profit School
For-profit education refers to educational institutions operated by private, profit-seeking businesses....
' taking advantage of students and taxpayers." The Department of Education has not yet responded to the findings.
2011 Senate Hearings
On March 10, 2011 Senator. Tom Harkin (D-Iowa) chaired a hearing of the Health, Education, Labor, and Pensions Committee that examined a "case study" of Bridgepoint Education, Inc., which has experienced near-exponential profit growth in the last few years despite low graduation rates. Bridgepoint owns two universities that it purchased when both were near bankruptcy, Ashford University in Iowa and the University of the Rockies in Colorado. When it purchased Ashford University in 2005, it had less than 300 students but today has over 78,000 students, 99% of which are online.Senator Harkin took issue with the fact that despite such growth of the company, student success was lacking. According to information provided by Senator Harkin in the committee hearing, 63% of students who enrolled at Ashford University during the 2008-2009 school year withdrew before completion of their perspective program. Senator Harkin pointed out that Bridgepoint recorded more than $216 million in profits in 2010; of which 86.5 percent of its revenues come from federal funds. In reference to these figures, Senator Harkin is on record as saying, "In the world of for-profit higher education, spectacular business success is possible despite an equally spectacular record of student failure, Bridgepoint is a private company, but it is almost entirely dependent upon public funds ... I think this is a scam, an absolute scam."
Kathleen Tighe, inspector general with the U.S. Department of Education, testified at the hearing that in an audit of Ashford, she discovered Ashford was improperly distributing student aid to students. "Seventy-five percent of the improper disbursements to students in our sample were made to students who never became eligible," Tighe said. For the 2006-2007 award year during which the audit was performed, it is estimated Bridgepoint hadn't returned $1.1 million in improperly obtained student aid to the federal government. Tighe said on a recent report she'd seen that Bridgepoint was "sitting on" $130 million in total credit balances.
Due to the ongoing Office of Federal Student Aid (FSA) proceedings, and in order to preserve due process, Bridgepoint chose not to send executives to the HELP committee hearing while engaged in negotiations with FSA.
Rather, Bridgepoint published a summary of responses called Bridgepoint Education Transparency.