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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s