DOJ Investigates For-Profit University Over Pay for Admissions Officers: News of the Day

According to government filings, the U.S. Department of Justice may be probing admissions personnel compensation at for-profit education company Bridgepoint Education Inc. From The Huffington Post:

Bridgepoint said in a regulatory filing with the U.S. Securities and Exchange Commission that it was evaluating the letter it received on Oct. 10, but declined to comment further on the matter.

"In its letter, the Justice Department indicated that it is considering a formal process to obtain evidence as part of its investigation," the company said.

The affiliation of Bridgepoint's Ashford University with the Higher Learning Commission has been under scrutiny since the Western Association of Schools and Colleges said in July that the college spends more money on recruiting students than on teaching them.

Just last month, Reps. John Tierney (D-Mass.) and George Miller (D-Calif.), the senior Democrat on the committee, introduced legislation that would ensure the tuition dollars students and taxpayers invest in higher education at for-profit institutions are spent on educating students, not marketing, advertising or CEO pay.

The bill would require for-profit postsecondary institutions to dedicate at least 80 percent of their total revenue to educational expenses or provide rebates to students, taxpayers or both. As college costs continue to rise, this bill helps ensure that we are investing in a high-quality education rather than recruiters or advertising. The bill is modeled after provisions in the Affordable Care Act, which were proposed and championed by Rep. Tierney, providing for rebates to Americans when an insurance company fails to use a sufficient percentage of premium revenues on providing health care.

For more information on the College Student Rebate Act, click here.