In the year twenty fourteen, a deal was struck between Iowa State and two institutions, Ashford University and its parent company Bridgepoint Education Incorporated. It is called the Ashford settlement. The Iowa attorney general facilitated it. This was in response to charges of gross misconduct and violation of consumer fraud act in place to protect consumers. This was specifically related to how the institution did its recruitment, selection and eventual enrollment process. They however denied all allegations leveled against them.
The university along with its parent company was accused of several issues. These include withholding valuable information vital to students in making their enrollment decisions, the use of high-pressure tactics of sales, charging exorbitant fees that are non-refundable as well as making several misleading statements in a bid to convince prospective candidates to enroll in their online classes.
Though the university denied any wrongdoing, it agreed on a seven million, two hundred and fifty thousand dollar settlement. This was primarily to resolve claims that its recruiters lied to increase total online enrollment with the institution. This resolution is a culmination of about three years of continued investigation of the recruitment practices used.
The terms of the agreement were as follows. They are not to make misleading, false and deceptive statements, omit material intentionally that could have repercussions on the eventual decision of students or use unscrupulous methods of coercion in a bid to persuade students to enroll. These terms were to be followed to the letter.
The two institutions agreed to make any vital information that is required by students available to enable them make good decisions. They should also agree to adequately train all personnel they have employed, they are to take all necessary steps to make sure that their retention techniques are legal. They are also required to compensate third parties that were instrumental in their recruitment process.
A settlement administrator, Thomas J. Perrelli, was appointed to oversee how the process was being handled by the school. His work was to review the compliance of the school to the terms stipulated. He enjoys certain and privileges like listening in on recorded voice calls, look at complaints and review them, go through any records relevant to his investigation and talk to any employee or student both past an present. He effectively sees if the agreement is working and any successes it has had.
The agreement is inclusive of provisions that relate to the possible reimbursement of some students, former and current. However, this reimbursement must go through the office of the attorney general. The settlement administrator does not have any authority whatsoever relating to this reimbursement or other payments to be made under the agreement. This is not his work and thus he should not be involved.
Many institutions are taking advantage of the increased demand for education by Americans. Today, education is seen as one of the most important aspects of life. It empowers people to become economically viable. With the increased number of educational institution, competition has increased tremendously. Unfortunately some schools are using underhanded methods to get ahead this settlement is a win not only for the victims of Ashford University but the whole education system as well.
The university along with its parent company was accused of several issues. These include withholding valuable information vital to students in making their enrollment decisions, the use of high-pressure tactics of sales, charging exorbitant fees that are non-refundable as well as making several misleading statements in a bid to convince prospective candidates to enroll in their online classes.
Though the university denied any wrongdoing, it agreed on a seven million, two hundred and fifty thousand dollar settlement. This was primarily to resolve claims that its recruiters lied to increase total online enrollment with the institution. This resolution is a culmination of about three years of continued investigation of the recruitment practices used.
The terms of the agreement were as follows. They are not to make misleading, false and deceptive statements, omit material intentionally that could have repercussions on the eventual decision of students or use unscrupulous methods of coercion in a bid to persuade students to enroll. These terms were to be followed to the letter.
The two institutions agreed to make any vital information that is required by students available to enable them make good decisions. They should also agree to adequately train all personnel they have employed, they are to take all necessary steps to make sure that their retention techniques are legal. They are also required to compensate third parties that were instrumental in their recruitment process.
A settlement administrator, Thomas J. Perrelli, was appointed to oversee how the process was being handled by the school. His work was to review the compliance of the school to the terms stipulated. He enjoys certain and privileges like listening in on recorded voice calls, look at complaints and review them, go through any records relevant to his investigation and talk to any employee or student both past an present. He effectively sees if the agreement is working and any successes it has had.
The agreement is inclusive of provisions that relate to the possible reimbursement of some students, former and current. However, this reimbursement must go through the office of the attorney general. The settlement administrator does not have any authority whatsoever relating to this reimbursement or other payments to be made under the agreement. This is not his work and thus he should not be involved.
Many institutions are taking advantage of the increased demand for education by Americans. Today, education is seen as one of the most important aspects of life. It empowers people to become economically viable. With the increased number of educational institution, competition has increased tremendously. Unfortunately some schools are using underhanded methods to get ahead this settlement is a win not only for the victims of Ashford University but the whole education system as well.
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