A Fact File On The $7.25 Million Ashford Settlement Case

By Beryl Dalton


To graduate and get that much sought after academic qualification is the dream for many ambitious university students. This is the gateway to good houses, loans, job and a good lifestyle both on the economic and social platform. All these solely center on that paper. This however could turn to a nightmare when the validity of your papers is questioned. A good example is the Ashford settlement case to begin with.

The three parties involved, Des Moines Iowa, the University of Ashford and Bridgepoint Education Inc. Were ordered to settle the $7.25 fine for a number of consumer fraud charges. These companies have led to a number of students missing licenses, indebted most of them and wasted a large amount of their time too. The institution is believed to have duped potential students to a falsified program that could land them nowhere.

These institutions went against a number of laws contained in the Iowa Consumer Fraud Act. According to Attorney Miller, these included the following. Making of false and misguiding data to students in order to win their trust for enrollment purpose was the first charge. Secondly, they were accused of using overly emotional and pressurized techniques to impede rational choice on the prospective students.

They were also charged with hiding vital material facts about the institution and their curriculum. The other charge was, to hoodwink prospective students that getting an education degree there would guarantee a job. However, this is not true as one needs more time, money and coursework to get this done. Lastly, the unwarranted technology fee as termed by them which stood at $900 dollars.

After $7.25 million, Assurance of Voluntary Compliance, that the court ordered the parties to pay, the case was as well as settled. The money was to be split between the government and the affected parties. The government was to take $250000 for carrying out the compensation process where the affected students were to benefit. The remaining seven million was to be for the actual compensation to these students in a manner to be decided.

The court further limited the scope of the beneficiaries. Those who were to benefit from the reimbursement were those students who had already graduated and were unable to get licenses on the basis of validity of their papers. It also ordered the school to change a number of its practices going forward. The nature of their advertisements needed to be non-coercive and less emotional.

The institution was cautioned on the creation of untrue and misleading information to possible students as a means to persuade. They were expected henceforth to offer full and complete information regarding their courses and curriculum for the students. On the part of licensing, the court ordered unless true, the steps towards getting it were to be availed to the students. Not to omit any content from the student and desist unfair practices.

Lastly, the head at Ashford was required to be tabling annual financial reports to the government. As argued, oversight was to play a key role in curbing this in future. The affected and the enrolled students were to take an online orientation course. The school was also ordered to allow the willing students to freely drop out within the first three weeks with no charges.




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