Justice Department investigates Ashford University for potential violations of federal financial aid rules

Federal prosecutors are looking into whether the parent company of Ashford University is violating a law that prohibits for-profit colleges from getting more than 90 percent of their operating revenue from federal student aid funding.

Source: Justice Department is investigating whether a for-profit college company violated federal financial aid rules

In a regulatory filing Tuesday, Bridgepoint disclosed that federal prosecutors are investigating allegations that the company misstated the amount of money it receives from government loans and grants provided to students or overstated revenue tied to private loan programs. If the accusations are found to be true, the company would be breaking the so-called 90/10 rule.

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