Ashford Accreditation Update

The biggest threat to BPI may turn out to be the securities fraud lawsuits. I am certainly not an expert on securities law, but the case against BPI seems pretty straightforward: WASC told them in early 2011 that Ashford's accreditation was in jeopardy, but BPI didn't reveal that information to shareholders until 2012, at which point their stock collapsed. Meanwhile BPI execs sold as much of their stock as possible before it tanked.

So the lawyers are now circling BPI like vultures -- and these include some pretty heavy hitting law firms, like this one:

BPI's stock fell by a large amount relative to their current stock value. So they might (in theory) be liable for damages that could wipe out most or all of that current remaining value. If the lawsuits demonstrate that BPI execs filed misleading reports with the SEC, then maybe there would even be potential for criminal charges.

It will be interesting to see how BPI addresses the shareholder lawsuits in their next quarterly filing.

 

Bridgepoint has announced several moves which are apparently designed to improve Ashford's chances for continued regional accreditation:

-- hiring an undisclosed number of additional full-time faculty

-- requiring students taking online courses to be at least 22 years old, unless they already have an associate's degree

-- allowing students to sample classes for the first three weeks for free

-- reducing technology fee charges

-- suspending new enrollments for two programs, business and organizational management, with high dropout rates

-- naming Gregory Geoffroy, the president emeritus of Iowa State University, to the Ashford Board of Trustees

Bridgepoint CEO: "Our number one priority is to maintain regional accreditation for Ashford."

Wells Fargo stock analyst: "The negative effects of Ashford University’s accreditation issues seem to have kicked in faster and more dramatically than we had expected ... They’re pulling out all the stops. Listening to these steps they’re taking, it’s hard to think at the end of the day they would not be able to get accreditation."

 

Bridgepoint Education Inc. has filed the following statement with the SEC regarding the securities class action lawsuits that they now face:

So Bridgepoint, at this time, is not prepared to estimate how damaging it might be if they were to lose that lawsuit.

 

Sounds like they're going to try to stick it out.

Generally, the announced moves are solid, if long overdue. I think the arbitrary age of 22 is a bit silly, though-- if you can drink at 21, you should be able to sign up for Ashford at 21.

 

Now here is something unusual. Everyone knows that universities issue academic catalogs, with listings of courses, policies, etc. Typically there is a new edition issued before the start of every academic year.

Well, Ashford has extensively revised its 2012-2013 Academic Catalog -- but right in the middle of the academic year. They have issued a "2012-2013 Catalog Supplement", which literally has the old 2012-2013 policies crossed out, and which shows new 2012-2013 policies that replace them. These generally include the new policies listed above in Post #22.

This change -- which is shown in the new "Catalog Supplement" -- most likely indicates that Ashford sees high drop-out and default rates from students who enter Ashford under the age of 22 with no previous college experience. The age limitation is obviously arbitrary, but Ashford may have no other good way to screen for students who are unlikely to succeed. More selective schools use standardized tests, but Ashford probably doesn't want to impose this extra burden on applicants.

 

There are other ways to screen for these issues. Some schools/programs require X number of years' work experience and a resume for admission. You could also drum up an online admissions exam to screen for certain characteristics.

 

-- "allowing students to sample classes for the first three weeks for free" - No one I have spoken to has seen this. I spoke to 4 new students and they said they were going to ask about this because they are having to pay for their classes in full. 2 just started and 2 have not started yet.

-- "reducing technology fee charges" - I spoke to several current and new students who said they have not seen evidence of this. They said the Technology fee is still $1290.

-- "suspending new enrollments for two programs, business and organizational management, with high dropout rates" - 2 of the new students I spoke with are in the business program and said they have not heard anything about admissions being suspended.

 

technology fee of $1290? omg that is ridiculous

 

They will definitely lose profits over this. Why can't they just make the admission requirements tougher instead of age?

 

The link that I posted previously to Ashford's 2012-2013 Catalog Supplement no longer works; apparently the file was revised again and re-posted under a slightly different name. You should be able to find the latest Catalog Supplement on this page. The currently posted version of the Catalog Supplement, which is dated 11/07/12, addresses all of the issues below:

Refer to the "Ashford University First Course Refund Schedule (Ashford Promise)" on Page 1 of the Catalog Supplement. Apparently there are some limitations. It seems that the offer only applies to your first class as a degree-seeking undergraduate or graduate student. Furthermore, it is only "Effective for classes starting on or after 11/13/12".

Page 2 of the Catalog Supplement indicates that the Technology fee is being slashed from $1290 to $50. However, it also says "Effective for students starting on or after January 1, 2013."

Page 21 of the Catalog Supplement states: "The Associate of Arts in Business and Associate of Arts in Organizational Management programs are not offered for students beginning on or after 11/6/12."

 

You probably could, but Ashford is under the gun; they have to show that they are doing something right now.

If you can't wait until the end of the academic year to revise the college catalog, you probably don't have the time to develop a new admissions exam either.

 

Yeah, but only those who ARE drinking--a lot--should be considering enrolling in Ashford.

 

I have a hard time believing the academics at Ashford are that bad.

They're notorious for their sales practices, sure. That doesn't mean it's a horrible school.

 

I resigned my online adjunct faculty position with Ashford today. I juggle 7 schools now and there were a number of reasons why AU seemed to be the bottom of the litter. However...

1. It had NOTHING to do with accreditation concerns.
2. It had NOTHING to do with a lack of academic rigor (in fact, as I've noted before I believe AU's academic rigor to be on par and above most of the other schools I've written or facilitated courses for).
3. It wasn't the lowest paying either.

 

Then it has something to do with GRAY MATTER! :crazy:

 

I was thinking the same....:smileeek:

 

That's where you take other program characteristics into consideration. For example, Nebraska state schools charge less than Ashford for master's degree programs, but the NE programs take longer to complete.

 

Nice.

In the end, I had to choose between AU and another school that also contracts me to write their curriculum. The courses I facilitate(d) for AU were on the edge of my areas of interest anyway - so they weren't as enjoyable. Those two issues were more significant than the others listed previously.