An Overview On The Ashford Settlement Iowa

By Margaret Bell


Ashford University and Bridgepoint Education Inc., which is the parent company based in San Diego, entered into an agreement with the Iowan state. This came about due to the allegations that were directed to both entities by the Iowa Attorney General. In his allegations, both Bridgepoint Education Inc. And Ashford University had gone against the Iowa Consumer Fraud Act through the manner they conducted their enrollment and recruitment. The agreement came to popularity as the Ashford Settlement iowa.

Before the agreement came into effect, Bridgepoint Education Inc. And Ashford University had denied their role in any wrongdoing or liability in the issue. The settlement comprised of certain terms that the two institutions were required to adhere to after the agreement. They were prohibited from using unconscionable tactics to persuade students to remain or enroll in Ashford University, making misleading statements, and undertaking any unfair practices.

Further, the two entities in question agreed to disclose clearly all matters concerning graduation rates, the median loan debt of graduates, and teacher certification. They also agreed to engage in training for their workers or employees and additional measures relating to graduation rates and student retention. The agreement goes a step further to shed light on the requirements pertinent to Ashford Technology Fee and to third party companies, who deal with both entities especially in giving leads to use for recruitment.

The Agreement included the facilitation or recruitment of a settlement Administrator, who was to operate independent of both entities. Consequently, this led to the appointment of Mr. Thomas J. Perrelli to handle the particular job. His main function was to evaluate or oversee that both institutions adhered or complied with the particular agreement during the three-year term that the Settlement Administrator was tasked with the job.

Mr. Perrelli had to listen to phone calls and review complaints made by residents or students concerning BPI or Ashford. Further, he was to go through all records of both institutions while talking to employees or students. An annual report on the findings was to be submitted to BPI and the Iowa Attorney General.

Money amounting to $7,250,000 was handed out to the state of Iowa by the alleged institutions for reimbursement purposes. However, it was upon the Attorney General to use the money to serve a variety of needs within his or her discretion.

Matters concerning with the reimbursement of funds were to be addressed by the Attorney General. This meant that the Settlement Administrator had no role to play in the matter concerning payment of any funds to either the current or the former students. Residents of Iowa eligible for payment were supposed to contact the office charged with the particular task through a given hotline or website set by the office of the attorney General.

People who had feedback, complaints or concerns were supposed to seek the guidance from the Settlement Administrator. In addition, such issues could be channeled directly to the relevant office of Iowa especially if individuals felt that the workers were misleading them.




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