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.

The agreement did not come by easily since both entities denied their liability and wrongdoing. Further, the agreement contained various terms, which Ashford and BPI were required to abide. The terms in this agreement prohibited or restricted both entities from engaging in unfair practices, making misleading statements, and using any coercive to convince students to enroll or remain enrolled in the university.

Full and clear disclosure of all material facts concerning graduation fees, teacher certification, and graduate fess was to be effected by the two parties. In addition, the charged institutions agreed to provide training to their workers and look into depth matters concerning graduation fess and student retention. The third party entities who generate useful leads utilized in undertaking enrollment and recruitment were to be evaluated closely under the agreement. This evaluation also included the Ashford Technology fee.

For this agreement to be effected it required the facilitation of a Settlement Administrator. The administrator was to work independently not for either if the two institutions. Thomas J. Perrelli was the man tasked with this role. The major role of Thomas as the Settlement Administrator was to oversee and evaluate the compliance of both institutions to the terms stipulated in that agreement for a period of three years.

The role of checking compliance with the certain agreement included listening to telephone conversations and reviewing complaints leveled against the two entities . Talking with both former and current employees or students was also part of his job. Consequently, all the findings were compiled into an annual report that was to be delivered to the Attorney General and the Bridgepoint Education Inc.

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.

Students or residents were supposed to seek the help of the independent party, Settlement Administrator. This was particularly if they felt that either BPI or Ashford workers had misled them in course of a particular task. Furthermore, complaints, feedback, or concerns could also be addressed to the office of the state or Attorney General.




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