The Justice Department has launched a probe into whether Bridegepoint Education, the owner of Ashford University and the University of the Rockies, is violating a law that prohibits for-profit colleges from getting more than 90 percent of their operating revenue from federal student aid funding.
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.
Investigators have requested financial documents from fiscal years 2011 to 2014, according to the filing. Bridgepoint officials say the company is evaluating the request and intends to fully cooperate with the investigation.
Read more at The Washington Post: https://www.washingtonpost.com/news/grade-point/wp/2016/07/12/justice-dept-is-investigating-a-for-profit-college-company-for-violating-federal-financial-aid-rules/