Zovio

{{short description|Education technology services company}} {{Use mdy dates|date=March 2014}} {{Infobox company | name = Zovio | former_name = Bridgepoint Education | logo = Zovio_Logo.jpg | type = Public | traded_as = {{NASDAQ|ZVO}} Russell Microcap Index component | foundation = 2004<ref name="bpiannualreport2014">{{cite web|url=http://bpiannualreport2014.com/pdf/2014_10K_BPI.pdf |pages=12–50 |title=Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2014 |date=March 10, 2015 |publisher=Bridgepoint Education, Inc. |archive-url=https://web.archive.org/web/20150416190039/http://bpiannualreport2014.com/pdf/2014_10K_BPI.pdf |archive-date=April 16, 2015 }}</ref> | location = Chandler, AZ, US | num_employees = Faculty: 100 full-time, 2,590 adjunct 1,730 non-faculty staff | assets = {{decrease}} US$161 million (2021) | revenue = {{decrease}} US$263 million (2021) | net_income = {{increase}} US$-42 million (2021) | subsid = Fullstack Academy | homepage = {{URL|zovio.com}} | industry = Educational technology Higher Education | footnotes= <ref name=10-K>{{cite web | url=https://sec.report/Document/0001305323-20-000019/#i_0_46 | title=Zovio 2019 Form 10-K Annual Report}}</ref> }}

'''Zovio''', formerly '''Bridgepoint Education''', Inc. ('''BPI'''), was a publicly held, American for-profit education services company. It was the online program manager for one online university, the University of Arizona Global Campus (formerly Ashford University), until the contract termination was announced August 1, 2022. In April 2019, the company changed its name to Zovio, moving its headquarters to Chandler, Arizona.<ref>{{Cite web|url=https://www.edsurge.com/news/2019-04-04-bridgepoint-education-gets-a-new-name-office-and-online-tutoring-service|title=Bridgepoint Education Gets a New Name, Office and Online Tutoring Service - EdSurge News|date=2019-04-04|website=EdSurge|language=en|access-date=2019-04-05}}</ref> In 2020, the company sold Ashford University to the University of Arizona.<ref name="wsj.com">{{Cite web|url=https://www.wsj.com/articles/university-of-arizona-to-acquire-ashford-university-in-online-push-11596452400|title=University of Arizona to Acquire Ashford University in Online Push|date=2020-08-03|website=The Wall Street Journal|language=en|access-date=2020-09-03}}</ref> Zovio also owned Waypoint Outcomes and Fullstack Academy and traded on NASDAQ under the ticket symbol ZVO.<ref name="BloombergTicker">{{cite web|url=https://www.bloomberg.com/research/stocks/people/person.asp?personId=30396776&ticker=BPI|title=bridgepoint education inc (BPI:New York)|access-date=April 13, 2015|work=Bloomberg Business}}</ref>

==History== ===Founding (1999)=== Zovio was first incorporated in Delaware in May 1999 under the name TeleUniversity, Inc.<ref name="bpiannualreport2014" /> The company changed its name to Bridgepoint Education, Inc. in February 2004.<ref name="bpiannualreport2014" />

===Bridgepoint Education (2004–2019)=== Bridgepoint Education purchased The Franciscan University of the Prairies in Clinton, Iowa in 2005 and changed its name to Ashford University. In September 2007 Bridgepoint purchased the Colorado School of Professional Psychology, and changed that institution's name to University of the Rockies.<ref>{{cite web|url=http://www.help.senate.gov/imo/media/for_profit_report/PartII/Bridgepoint.pdf|title=Bridgepoint Education, Inc.|access-date=April 13, 2015}}</ref> In 2008, Bridgepoint Education was named the fastest-growing private education company in the United States, as well as the fastest-growing private company in San Diego by ''Inc.'' magazine.<ref>{{cite web|url=http://www.inc.com/inc5000/2007/company-profile.html?id=200700170|title=Inc. 5000 The Fasted Growing Private Companies in America|access-date=November 7, 2010|work=Inc. 5000 List}}</ref> In April 2009, Bridgepoint Education went public, and began trading on the New York Stock Exchange under the ticker symbol BPI.<ref name="warburg">{{cite web |title=Portfolio, Bridgepoint Education |url=http://www.warburgpincus.com/portfolio/ViewCompany,id,3.aspx |url-status=dead |archive-url=https://web.archive.org/web/20150219150138/http://www.warburgpincus.com/portfolio/ViewCompany%2Cid%2C3.aspx |archive-date=February 19, 2015 |access-date=April 13, 2015 |df=mdy-all}}</ref> Bridgepoint's Ashford University had an estimated economic impact on state of Iowa of $40.9 million in business output, 782 jobs, $12.6 million in employee earnings, and $18.6 million in total value added to the state's GDP.<ref>{{Citation|url=http://bridgepointeducation.com/documents/Iowa_Economic_Impact_Study.pdf#page=7|page=7|date=August 1, 2010|access-date=13 April 2015|last1=London|first1=Gary|last2=Moeder|first2=Nathan|publisher=The London Group|title=Iowa Economic Impact Study|archive-url=https://web.archive.org/web/20160304030059/http://bridgepointeducation.com/documents/Iowa_Economic_Impact_Study.pdf#page=7|archive-date=March 4, 2016|url-status=dead|df=mdy-all}}</ref>

From 2010 through 2013, Bridgepoint Education was the title sponsor of the Holiday Bowl postseason college football game in San Diego.<ref>{{cite news|last=Schrotenboer|first=Brent|title=Bridgepoint takes over as Holiday Bowl sponsor|work=SignonSanDiego.com|access-date=March 1, 2011|date=April 27, 2010|url=http://www.signonsandiego.com/news/2010/apr/27/bridgepoint-takes-over-as-holiday-bowl-sponsor/}}</ref> In 2013, Bridgepoint Education helped generate over $1 billion in income and 4,505 outside jobs in San Diego.<ref>{{cite news|url=http://www.utsandiego.com/news/2012/jun/18/edc-report-bridgepoint-had-1b-impact-sd-county-las/|last=Horn|first=Jonathan|title=EDC report: Bridgepoint had $1B impact in S.D. county|date=18 June 2012|access-date=13 April 2015|work=San Diego Union-Tribune}}</ref><ref name="sandiegobiz">{{cite press release|url=http://www.sandiegobusiness.org/sites/default/files/files/Bridepoint%20Eco%20Analysis%20FINAL.pdf|date=18 June 2012|access-date=13 April 2015|title=San Diego Regional Economic Development Corp. Releases Bridgepoint Economic Impact Analysis|publisher=San Diego Regional Economic Development Corporation|archive-date=April 15, 2015|archive-url=https://web.archive.org/web/20150415211132/http://www.sandiegobusiness.org/sites/default/files/files/Bridepoint%20Eco%20Analysis%20FINAL.pdf|url-status=dead}}</ref> In 2013, Bridgepoint Education's Ashford University announced an alliance with business publisher Forbes Media. Under the terms of the alliance, Ashford's College of Business and Professional Studies was renamed the Forbes School of Business at Ashford University.<ref>{{cite press release|url=https://www.forbes.com/sites/forbespr/2013/11/05/ashford-university-and-forbes-media-form-alliance-and-name-the-forbes-school-of-business/|title=Ashford University and Forbes Media Form Alliance and Name the Forbes School of Business|date=November 5, 2013|access-date=April 13, 2015|work=Forbes.com}}</ref>

On December 22, 2015, an agreement was made that Clinton Catalyst, LLC would buy the Ashford University campus properties for $1.6 million, according to the ''Clinton Herald''. For the subsequent 12 months, Ashford University planned to lease the campus from Clinton Catalyst to make sure that the spring semester classes could continue, according to the ''Clinton Herald''{{'s}} report.<ref>{{Cite web |last=Levin |first=Scott |date=December 30, 2015 |title=Real estate company purchases Ashford properties |url=http://www.clintonherald.com/news/updated-real-estate-company-purchases-ashford-properties/article_8c03bb1a-ae3c-11e5-96b9-6f74992d2ed5.html |access-date=June 3, 2016 |website=Clinton Herald}}</ref> In March 2017, Secretary of Education Betsy DeVos appointed Robert Eitel, a vice president at Bridgepoint, as an advisor.<ref>{{cite news|url=https://www.nytimes.com/2017/03/17/business/education-for-profit-robert-eitel.html |title=Betsy DeVos's Hiring of For-Profit College Official Raises Impartiality Issues |first=Patricia |last=Cohen |work=New York Times |date=March 17, 2017 |access-date=August 5, 2020}} </ref> At the end of 2018, its last full year of operation under the Bridgepoint name, Bridgepoint enrollment stood at 38,153.<ref name="bpiannualreport2014" /><ref>{{Cite web|date=February 20, 2020|title=Form 10-K 2019 {{!}} Zovio Inc.|url=https://s23.q4cdn.com/742949744/files/doc_financials/2019/ar/20200318-Zovio-2019-Annual-Report_Complete.pdf|access-date=July 10, 2020|archive-date=July 11, 2020|archive-url=https://web.archive.org/web/20200711003510/https://s23.q4cdn.com/742949744/files/doc_financials/2019/ar/20200318-Zovio-2019-Annual-Report_Complete.pdf|url-status=dead}}</ref> On March 12, 2019, Bridgepoint Education reported to the Securities and Exchange Commission (SEC) that it had made unreliable statements about its earnings and losses. The company estimated an operating loss of $13.6–14.0 million loss for the quarter ending in December 2018.<ref>{{cite web|url=https://www.sec.gov/Archives/edgar/data/1305323/000130532319000025/ex-991q42018earningsreleas.htm |title=Bridgepoint Education Reports Fourth Quarter and Full Year 2018 Results |website=U.S. Securities and Exchange Commission |publisher=Bridgepoint Education |access-date=August 5, 2020}}</ref> The same day, Bridgepoint announced the acquisition of the coding boot camp Fullstack Academy for approximately US$20 million.<ref>{{cite web|url=https://www.insidehighered.com/quicktakes/2019/03/13/bridgepoint-education-acquires-coding-boot-camp|access-date=April 4, 2019|title=Bridgepoint Education Acquires Coding Boot Camp|website=InsideHigherEd.com}}</ref>

Charitable organizations and programs Bridgepoint partnered with included After-School All-Stars,<ref>{{cite web|url=http://galvanizedstrategies.com/keeping-risk-san-diego-kids-school-science/|title=Keeping At-Risk San Diego Kids in School? It's Science|date=18 April 2014|access-date=13 April 2015|archive-date=October 23, 2014|archive-url=https://web.archive.org/web/20141023153428/http://galvanizedstrategies.com/keeping-risk-san-diego-kids-school-science/|url-status=dead}}</ref> Big Brothers Big Sisters of San Diego,<ref>{{cite news|url=http://kyxy.cbslocal.com/2011/09/12/bridgepoint-education-committed-to-san-diego-4/|title=Bridgepoint Education Committed To San Diego|date=12 September 2011|access-date=13 April 2015|archive-url=https://web.archive.org/web/20160305232514/http://kyxy.cbslocal.com/2011/09/12/bridgepoint-education-committed-to-san-diego-4/|archive-date=March 5, 2016|url-status=dead|df=mdy-all}}</ref> Boys & Girls Clubs of Greater San Diego,<ref>{{cite web|url=http://www.sdyouth.org/partnertestimonials.aspx|title=Corporate Partner Testimonials|access-date=13 April 2015|url-status=dead|archive-url=https://web.archive.org/web/20150414054824/http://www.sdyouth.org/partnertestimonials.aspx|archive-date=April 14, 2015|df=mdy-all}}</ref> Computers 2 SD Kids,<ref>{{cite news|url=http://sdchamber.org/news-and-publications/publications/business-action-online-2015/february-2015/business-action-online-february-2015/chamber-computer-challenge4.html|title=Chamber Computer Challenge|date=19 February 2015|access-date=13 April 2015|url-status=dead|archive-url=https://web.archive.org/web/20150415193415/http://sdchamber.org/news-and-publications/publications/business-action-online-2015/february-2015/business-action-online-february-2015/chamber-computer-challenge4.html|archive-date=April 15, 2015|df=mdy-all}}</ref> the Homefront Heroes Scholarship Program,<ref>{{cite news|url=http://www.classesandcareers.com/education/2013/01/30/ashford-university-online-gives-scholarship-to-military-spouses-at-holiday-bowl/|title=Ashford University Online Gives Scholarship to Military Spouses at Holiday Bowl|date=30 January 2013|access-date=13 April 2015|archive-date=February 8, 2013|archive-url=https://web.archive.org/web/20130208092803/http://www.classesandcareers.com/education/2013/01/30/ashford-university-online-gives-scholarship-to-military-spouses-at-holiday-bowl/|url-status=dead}}</ref> the Jacobs & Cushman San Diego Food Bank,<ref>{{cite web|url=http://sandiegomagazine.com/Blogs/Monday-Morning-Good-News/Summer-2013/Monday-Morning-Good-News-September-16/|title=Good News about San Diego non-profits and businesses doing good for your community|last=Glazer|first=Joyce|date=16 September 2013|access-date=13 April 2015|work=San Diego Magazine}}</ref> Junior Achievement,<ref>{{cite news|url=http://www.pomeradonews.com/news/2014/nov/26/its-all-business-at-pomerado-elementary/|title=It's all business at Pomerado Elementary|last=Sorensen|first=Emily|date=26 November 2014|access-date=13 April 2015|work=Pomerado News}}</ref> Make-A-Wish Foundation,<ref>{{cite web|url=http://www.sandiegomagazine.com/San-Diego-Magazine/Charitable-Events/Charitable-Events-Calendar/index.php/name/Make-A-Wish-Foundation-of-San-Diego-Holds-Walk-for-Wishes-Raising-Funds-for-Wish-Granting/event/12194/|title=Make-A-Wish Foundation of San Diego Holds 'Walk for Wishes,' Raising Funds for Wish Granting|date=26 February 2011|access-date=13 April 2015|work=San Diego Magazine}}</ref> A Salute to Teachers,<ref>{{cite web|url=http://www.sdcoe.net/news/Pages/2010-padres-teacher-appreciation.aspx|title=Padres Honor Local Teaching Profession With 9th Annual Teacher Appreciation Nigh|access-date=13 April 2015}}</ref> the San Diego Office of Education,<ref>{{cite web|url=http://www.jasandiego.org/assets/files/pdf-forms/AR.pdf#page=8|title=Junior Achievement of San Diego and Imperial Counties, Inc. 2009 Annual Report|access-date=13 April 2015|archive-date=March 4, 2016|archive-url=https://web.archive.org/web/20160304001915/http://www.jasandiego.org/assets/files/pdf-forms/AR.pdf#page=8|url-status=dead}}</ref> the Teacher Appreciation Scholarship Program,<ref>{{cite web|url=http://www.elearnportal.com/news/scholarships/online-degree-provider-awards-teaching-scholarships|title=Online degree provider awards teaching scholarships|date=11 May 2011|access-date=13 April 2015|archive-url=https://web.archive.org/web/20150415195553/http://www.elearnportal.com/news/scholarships/online-degree-provider-awards-teaching-scholarships|archive-date=April 15, 2015|url-status=dead|df=mdy-all}}</ref> United Way of San Diego,<ref>{{cite web|url=http://www.uwsd.org/content/top-25-campaign-partners|title=Top 25 Campaign Partners|access-date=13 April 2015}}{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> and Warrior Foundation-Freedom Station.<ref>{{cite web|url=http://www.warriorfoundation.org/component/comprofiler/userslist/Sponsors?Itemid=119&rand=14769&limit=10&start=10|title=Warrior Foundation Freedom Station Sponsors|access-date=13 April 2015|archive-url=https://web.archive.org/web/20150415211111/http://www.warriorfoundation.org/component/comprofiler/userslist/Sponsors?Itemid=119&rand=14769&limit=10&start=10|archive-date=April 15, 2015|url-status=dead|df=mdy-all}}</ref> The Bridgepoint Heroes program brought Bridgepoint employees together for large-scale volunteer efforts. Past Bridgepoint Heroes initiatives included cleaning Chollas Lake Park, cleaning Balboa Park, cleaning the San Diego River Garden, revitalizing the Mary Fay Pendleton School on Marine Corps Base, Camp Pendleton, and restoring Ruffin Canyon.<ref>{{cite web|url=http://www.sdcoastkeeper.org/blog/environmental-education/itemlist/tag/bridgepoint%20education.html|title=Hardcore Bridgepoint Heroes brave rain to clean up Mission Beach|access-date=April 13, 2015|work=San Diego Coastkeeper|url-status=dead|archive-url=https://web.archive.org/web/20150415193636/http://www.sdcoastkeeper.org/blog/environmental-education/itemlist/tag/bridgepoint%20education.html|archive-date=April 15, 2015|df=mdy-all}}</ref>

===Zovio (2019–2022)=== In April 2019, Bridgepoint changed its name to Zovio and moved its stock listing to the NASDAQ, where it trades under the ticker symbol ZVO.<ref>{{cite web|url=https://seekingalpha.com/news/3447941-bridgepoint-education-change-name-zovio-move-nasdaq|access-date=April 4, 2019|title=Bridgepoint Education to change name to Zovio, move to Nasdaq|website=SeekingAlpha.com}}</ref> On April 4, 2019, Zovio acquired on-demand tutoring provider TutorMe.<ref>{{cite web|url=https://www.insidehighered.com/quicktakes/2019/04/04/new-acquisition-name-and-headquarters-bridgepoint|access-date=April 4, 2019|title=New Acquisition, Name and Headquarters for Bridgepoint|website=InsideHigherEd.com|archive-date=April 4, 2019|archive-url=https://web.archive.org/web/20190404153240/https://www.insidehighered.com/quicktakes/2019/04/04/new-acquisition-name-and-headquarters-bridgepoint|url-status=dead}}</ref> In August 2020, the company announced that it would sell Ashford University to the University of Arizona.<ref name="wsj.com"/> The company reported an annual loss of $61 million for 2020.<ref>{{cite web |title=Form 10-K |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1305323/000130532321000013/zvo-20201231.htm |website=www.sec.gov |publisher=Securities and Exchange Commission |access-date=22 March 2021}}</ref>

In 2021, co-founder and CEO Andrew Clark left Zovio <ref>{{cite web |title=ZOVIO Announces Transition Plan for CEO |url=https://www.marketwatch.com/press-release/zovio-announces-transition-plan-for-ceo-2021-03-22?tesla=y |website=www.marketwatch.com |publisher=Market Watch |access-date=24 March 2021}}</ref> and two new board members were appointed, John Silvanus Wilson, Jr., former Morehouse College President, and Ron Huberman, former superintendent of Chicago's public schools.<ref>{{cite web |title=Zovio Announces Two New Appointments to the Board of Directors |url=https://www.marketwatch.com/press-release/zovio-announces-two-new-appointments-to-the-board-of-directors-2021-03-30?tesla=y |website=www.marketwatch.com |publisher=Marketwatch |access-date=1 April 2021}}</ref> Zovio continued to lose more money as enrollment at the newly branded University of Arizona Global Campus declined.<ref>{{cite web |last1=Bauman |first1=Dan |title=A New Mega-University Expects to Earn Big Money Immediately. Are Its Projections Too Ambitious? |url=https://www.chronicle.com/article/a-new-mega-university-expects-to-earn-big-money-immediately-are-its-projections-too-ambitious?cid=at&source=&sourceId= |website=www.chronicle.com |publisher=Chronicle of Higher Education |access-date=16 June 2021}}</ref> Zovio agreed to pay the Massachusetts Attorney General $295,120 and to stop collecting written off balances owed to Ashford University by students both enrolled in Ashford and Massachusetts residents from 2011 to 2014.<ref>{{cite web |title=ZOVIO Announces Resolution of Massachusetts Inquiry |url=https://www.marketwatch.com/press-release/zovio-announces-resolution-of-massachusetts-inquiry-2021-07-01-4183012?siteid=nbsh |website=www.marketwatch.com |publisher=Market Watch |access-date=2 July 2021}}</ref> In November 2021, the California Attorney General case filed in 2017 against Ashford University began its trial phase.<ref>{{cite web |last1=Halperin |first1=David |title=California Opens Fraud Trial Against College Now Owned by Arizona |url=https://www.republicreport.org/2021/california-opens-fraud-trial-against-college-now-owned-by-arizona/ |website=www.republicreport.org |publisher=Republic Report |access-date=17 November 2021}}</ref> California Judge Eddie C. Sturgeon found for the plaintiffs on March 3, 2022, his 49-page opinion citing evidence that Zovio deceived students about their ability to become teachers, nurses, social workers, drug and alcohol counselors using their degrees; and misled students about how much financial aid they would receive; misrepresented federal financial aid rules, understated costs of attendance, the time needed to complete degree requirements, their ability to transfer credits, and evidence of deception within the admissions department, and Zovio's tolerance for repeat compliance offenders. Zovio was fined $22,375,282. The Board of Directors officially closed the business on September 11, 2022. Following the liquidation, Zovio plans to sell Fullstack Academy for an amount estimated between $34 and $55 million, according to the mentioned filing to the SEC. Stockholders would receive only a portion of it, probably below $20 million.<ref name="Republic Report">{{cite web |last=Halperin |first=David |title=Verdict Against Zovio Adds to Peril for Arizona Global Campus |url=https://www.republicreport.org/2022/verdict-against-zovio-adds-to-peril-for-arizona-global-campus/ |publisher=Republic Report |date=28 March 2022|orig-date=Dated 9 March 2022, with update appended}}</ref> It sold its final asset in November 2022 before closing down.<ref>{{cite web |author=| title=Zovio liquidates final asset ahead of company closure | publisher=EdScoop | date=29 November 2022 | url=https://edscoop.com/zovio-liquidates-final-asset-ahead-of-company-closure/}}</ref>

==Leadership== On December 1, 2021, Zovio announced Randy Hendricks as its new CEO.<ref>{{cite web |title=EdTech Company, Zovio, Announces New CEO |url=https://www.prnewswire.com/news-releases/edtech-company-zovio-announces-new-ceo-301435419.html |website=www.prnewswire.com |publisher=PR Newswire |access-date=2 December 2021}}</ref>

==Philanthropy== Zovio directed its philanthropic efforts toward three aims: education, youth, and the military. The company said in 2021 that it had donated $11 million since 2005 through workplace giving campaigns.<ref>{{cite web |title=Corporate Social Responsibility & Community Involvement |url=https://www.zovio.com/our-story/corporate-social-responsibility#Giving|archive-url=https://web.archive.org/web/20230131041708/https://www.zovio.com/our-story/corporate-social-responsibility/|archive-date=31 January 2023 |publisher=Zovio}}</ref>

==Lawsuits, investigations, and controversies== Bridgepoint Education faced and settled several lawsuits, including state-level lawsuits and federal investigations.<ref>{{cite news|url=https://www.republicreport.org/2014/law-enforcement-for-profit-colleges/ |title=Law Enforcement Investigations and Actions Regarding For-Profit Colleges |first=David |last=Halperin |work=Republic Report|date=April 9, 2014 |access-date=August 4, 2020}}</ref> It has been investigated in New York, North Carolina, California, and Massachusetts. A U.S. Department of Education Office of Inspector General probe is ongoing. On December 3, 2014, a lawsuit was filed in Arizona federal court charging that Bridgepoint Education was violating the Telephone Consumer Protection Act by robocalling for purposes of sales.<ref name="sandiegoreader.com"/>

In 2008, the U.S. Department of Education's Office of Inspector General (OIG) audit services division performed a compliance audit of Ashford University for the period March 10, 2005, through June 30, 2009. The OIG audit reached the following conclusions:

{| class="wikitable" |- ! Audit focus<ref name=Bloomberg>{{cite news |url=https://www.bloomberg.com/apps/news?pid=20601087&sid=aNjtgW_dYMAs |title=Bridgepoint Education Plunges as U.S. Audit Looms |access-date=September 4, 2009 | work=Bloomberg |date=September 4, 2009}}</ref> ! Audit result<ref name="Chronicle">{{Cite news| last = Field| first = Kelly| title = Audit Finds Ashford U. Kept Student-Aid Money It Should Have Returned to Government| work = The Chronicle of Higher Education| access-date = January 25, 2011| date = January 24, 2011| url = http://chronicle.com/article/Audit-Finds-Ashford-U-Kept/126048/}}</ref> |- | Compensation policies and practices relating to enrollment advisers | Rewarded recruiters based on their success in securing enrollments |- | Calculation, timeliness, and disbursement accuracy of Title IV program funds | Improperly retained at least $1.1 million during the 2006–07 period and disbursed aid before students were eligible to receive the money |- | Student Authorizations to retain credit balances | Kept credit balances without the proper authorization |- | Maintenance of supporting documentation for a student's leave of absence | Took too long to return money awarded to students who withdrew or went on leave of absence |}

The stock of Bridgepoint Education fell the most in almost five months when the misuse of federal student aid was first publicly disclosed in 2009.<ref name="Bloomberg" /> When the official results were released in 2011, Senator Tom Harkin said this audit "reveals the same troubling pattern of for-profit colleges' taking advantage of students and taxpayers." The Department of Education has not yet{{When|date=December 2017}} responded to the findings.<ref name="Chronicle" />

===2011 Senate hearings=== On March 10, 2011, Senator Tom Harkin (D-Iowa) chaired a hearing of the Health, Education, Labor, and Pensions Committee that examined a "case study" of Bridgepoint Education, Inc., which has experienced near-exponential profit growth in the last few years despite low graduation rates.<ref name="SenateHearing"> {{Cite web|title = US Senate Committee on Health, Education, Labor, & Pensions| access-date = March 23, 2011| date = March 10, 2011| url = http://help.senate.gov/hearings/hearing/?id=7c3b8c00-5056-9502-5d7a-54d0c8286a98}}</ref><ref> {{Cite news|title = Hearing Sees Financial Success and Education Failures of For-Profit College| access-date = March 23, 2011| date = March 10, 2011| last=Lewin| first=Tamar| work=New York Times| url = https://www.nytimes.com/2011/03/11/education/11college.html}}</ref> Bridgepoint owns two universities that it purchased when both were near bankruptcy, Ashford University in Iowa and the University of the Rockies in Colorado. When it purchased Ashford University in 2005, Bridgepoint grew from less than 300 students to more than 78,000 students at its peak, 99% of which were online.<ref name="CampusProgress">{{Cite web |title=Sen. Harkin Says For-Profit Education Company Bridgepoint Is a 'Scam' |access-date=March 23, 2011 |date=March 11, 2011 |last=Steiger |first=Kay |work=Campus Progress |url=http://www.campusprogress.org/articles/sen._harkin_says_for-profit_education_company_bridgepoint_is_a_scam/ |url-status=dead |archive-url=https://web.archive.org/web/20121201223452/http://www.campusprogress.org/articles/sen._harkin_says_for-profit_education_company_bridgepoint_is_a_scam/ |archive-date=December 1, 2012 |df=mdy}}</ref>

Senator Harkin took issue with the fact that despite such growth, student success was lacking. According to information provided by Senator Harkin, 63% of students enrolled at Ashford University during the 2008–2009 school year withdrew before completion of their programs. Senator Harkin noted that Bridgepoint recorded $216 million in profits in 2010—of which 86.5% of its revenues came from federal funds. In reference to these figures, Senator Harkin was on record as saying, "In the world of for-profit higher education, spectacular business success is possible despite an equally spectacular record of student failure. Bridgepoint is a private company, but it is almost entirely dependent upon public funds ... I think this is a scam, an absolute scam."<ref name="CampusProgress" />

Kathleen Tighe, Inspector General with the U.S. Department of Education, testified at the hearing that in an audit of Ashford, she discovered the university was improperly distributing federal financial aid to students. "Seventy-five percent of the improper disbursements to students in our sample were made to students who never became eligible," Tighe said.<ref name="CampusProgress" /> For the 2006–2007 award year during which the audit was performed, it is estimated Bridgepoint had not returned $1.1 million in improperly obtained student aid to the federal government.<ref name="Tighe">{{Cite web|title = Statement of Kathleen S. Tighe| access-date = March 23, 2011| url = http://help.senate.gov/imo/media/doc/Tighe1.pdf}}</ref> Tighe said on a recent report she had seen that Bridgepoint was "sitting on" $130 million in total credit balances.<ref name="SenateHearing" />

Bridgepoint chose not to send executives to the HELP committee hearing while engaged in negotiations with Office of Federal Student Aid (FSA).<ref name="CampusProgress2"> {{Cite web |title=Why Bridgepoint Education Declined to Attend the HELP Committee Hearing |access-date=March 23, 2011 |work=bpitransparency.com |url=http://bpitransparency.com/response-to-help-hearing/why-bridgepoint-education-declined-to-attend-the-help-committee-hearing |url-status=dead |archive-url=https://web.archive.org/web/20110812201324/http://bpitransparency.com/response-to-help-hearing/why-bridgepoint-education-declined-to-attend-the-help-committee-hearing |archive-date=August 12, 2011 |df=mdy}}</ref> Rather, Bridgepoint published a summary of responses called "Bridgepoint Education Transparency.

===Additional lawsuits===

In 2014, Bridgepoint Education settled a lawsuit with the State of Iowa for $7.25 million, denying any "wrongdoing but agreed to not use any 'unconscionable or coercive tactics' to encourage students to enroll."<ref>{{cite web|url=http://chronicle.com/article/BridgepointAshford-U/146675/|title=Bridgepoint and Ashford U. Settle With Iowa Over Enrollment Tactics|date=May 16, 2014|website=Chronicle.com|access-date=December 16, 2017}}</ref>

On December 3, 2014, a lawsuit was filed in Arizona federal court charging that the company was violating the Telephone Consumer Protection Act by robocalling sales prospects.<ref name="sandiegoreader.com">{{cite news|url=http://www.sandiegoreader.com/news/2014/dec/11/ticker-bridgepoint/#|last=Bauder|first=Don|title=Lawsuits attack Bridgepoint's automatic dialing pitches|date=December 11, 2014|access-date=April 13, 2015|work=San Diego Reader}}</ref>

In 2016, a former senior vice president at Ashford University alleged that Bridgepoint falsified its financial reports by inaccurately projecting the student retention rate.<ref>{{cite web|url=https://www.sandiegoreader.com/news/2016/feb/11/ticker-suit-charges-bridgepoint-cooked-books/|title=Suit charges Bridgepoint cooked books|website=SanDiegoReader.com|access-date=December 16, 2017}}</ref>

In 2016, the Consumer Financial Protection Bureau took action against the company for "deceiving students into taking out private student loans that cost more than advertised".<ref name="CFPB Bridgepoint">{{cite web|url=https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-takes-action-against-bridgepoint-education-inc-illegal-student-lending-practices/|title=Consumer Financial Protection Bureau Takes Action Against Bridgepoint Education, Inc. for Illegal Student Lending Practices – Consumer Financial Protection Bureau}}</ref> Bridgepoint paid a penalty of $8 million to the CFPB and forgave and refunded loans to students totaling $23.5 million.<ref name="CFPB Bridgepoint"/>

In November 2017, the California Attorney General brought a lawsuit against Ashford University and its parent company Bridgepoint for engaging in "unlawful marketing, sales and debt collection practices".<ref name="sues">{{cite news|url=https://www.washingtonpost.com/news/grade-point/wp/2017/11/29/california-attorney-general-sues-for-profit-bridgepoint-education/|title=California attorney general sues for-profit Bridgepoint Education|first=Danielle|last=Douglas-Gabriel|date=November 29, 2017|newspaper=Washington Post|access-date=December 16, 2017}}</ref> California Judge Eddie C. Sturgeon found for the plaintiffs on March 3, 2022, his 49-page opinion citing evidence that Zovio deceived students about their ability to become teachers, nurses, social workers, drug and alcohol counselors using their degrees; and misled students about how much financial aid they would receive; misrepresented federal financial aid rules, understated costs of attendance, the time needed to complete degree requirements, their ability to transfer credits, and evidence of deception within the admissions department, and Zovio's tolerance for repeat compliance offenders. Zovio was fined $22,375,282.<ref name="Republic Report"/>

===Closure of Ashford University campus=== The December 2015, agreement with Clinton Catalyst, LLC by Bridgepoint Education to sell the Ashford University campus properties, in Clinton, Iowa, generated controversy in the higher education community.<ref>{{Cite web|url=https://www.insidehighered.com/news/2015/07/15/ashford-us-closure-and-what-it-says-about-profit-higher-ed|title=Ashford U's closure and what it says about for-profit higher ed|website=www.InsideHigherEd.com|access-date=June 3, 2016}}</ref> Critics questioned Bridgepoint's original commitment to the on-ground college, especially since it no longer needed a physical presence in the Midwest to keep its accreditation, and they accused Bridgepoint of having broken promises to maintain the campus.{{citation needed|date=May 2020}} Bridgepoint officials had stated that they were committed to retaining the Clinton campus, and had tripled its Iowa enrollment from 2005 to 2011 through investments in facilities (about $40 million), scholarships, and other financial aid of about $10 million a year (subsidized with revenues from online students), as well as expansion of academic and athletics programs.{{citation needed|date=May 2020}} Bridgepoint stated the company could not continue to subsidize the campus operation.{{citation needed|date=May 2020}}

===GI Bill controversies=== Since becoming an online-only university in 2016, Ashford University's GI Bill eligibility has been through numerous changes, challenges, and controversies. Because initial approval for GI Bill enrollment is granted by the home state of the educational institution in question, when Ashford closed its Iowa campus in 2016, it was in danger of losing its GI Bill approval in the summer of 2017, and sought approval from the state of California, where Bridgepoint is based, but did not receive it.<ref name="scramble">{{cite news|url=https://www.chronicle.com/article/inside-the-scramble-to-save-ashford-u/ |title=Inside the Scramble to Save Ashford U. |first=Michael |last=Vasquez |work=The Chronicle of Higher Education |date=November 10, 2017 |access-date=August 4, 2020}}</ref><ref>{{cite news|url=https://www.phoenixnewtimes.com/news/ducey-pushes-back-report-arizona-greased-wheels-ashford-university-9868251 |title=Ducey Administration Pushes Back on Report It Greased Wheels for Ashford University |first=Antonia Noori |last=Farzan |work=Phoenix New Times |date=November 16, 2017 |access-date=August 4, 2020}}</ref>

Ashford University then leased an office in Phoenix,<ref name="scramble"/><ref name="casts doubt">{{cite news|url=https://www.republicreport.org/2019/clash-over-ashford-univ-casts-doubt-on-va-protection-of-students/ |title=Clash Over Ashford Univ. Casts Doubt On VA Protection of Students |first=David |last=Halperin |work=Republic Report |date=February 5, 2019 |access-date=August 4, 2020}}</ref> and gained GI Bill approval from Arizona in September 2017,<ref>{{cite news|url=https://www.militarytimes.com/education-transition/education/2017/09/14/ashford-university-gets-ok-to-keep-gi-bill-students/ |title=Ashford University gets OK to keep GI Bill students |first=Natalie |last=Gross |work=Military Times |date=September 14, 2017 |access-date=August 4, 2020}}</ref> but in November 2017 the U.S. Department of Veterans Affairs (VA) ruled that the Phoenix office did not qualify as a "main campus", since Bridgepoint is headquartered in California, and therefore the jurisdiction for approval would fall to California, not Arizona.<ref>{{cite news|url=https://rebootcamp.militarytimes.com/education-transition/education/2017/11/13/ashford-universitys-gi-bill-eligibility-on-the-chopping-block-once-more/ |title=Ashford University's GI Bill eligibility on the chopping block once more |first= Natalie |last=Gross |work=Military Times Reboot Camp |date=November 13, 2017 |access-date=August 4, 2020}}</ref><ref name="after-chronicle">{{cite news|url=https://www.chronicle.com/article/after-chronicle-investigation-ashford-suspends-enrollment-of-gi-bill-students/ |title=After Chronicle Investigation, Ashford Suspends Enrollment of GI Bill Students |first=Liam |last=Adams |work=The Chronicle of Higher Education |date=November 15, 2017 |access-date=August 4, 2020}}</ref> On November 15, 2017, Bridgepoint suspended enrolling GI Bill students for Ashford University after a controversial exposé on the school appeared in the ''Chronicle of Higher Education''.<ref name="after-chronicle"/> On November 17, 2017, Warburg Pincus, Bridgeport Education's major underwriter, announced its complete divestment from Bridgepoint.<ref>{{cite news| url=https://www.streetinsider.com/Corporate+News/Bridgepoint+Education+(BPI)+Prices+7.56M+Share+Secondary+Offering+by+Warburg+Pincus+LLC;+Announces+2.1M+Share+Buyback/13521346.html |title=Bridgepoint Education (BPI) Prices 7.56M Share Secondary Offering by Warburg Pincus LLC; Announces 2.1M Share Buyback |work=StreetInsider.com |date=November 17, 2017 |access-date=August 4, 2020}}</ref> In late November 2017, the California Attorney General brought a lawsuit against Ashford University and Bridgepoint for engaging in unlawful marketing, sales, and debt collection practices.<ref name="sues"/><ref>{{cite web|url=https://oag.ca.gov/news/press-releases/attorney-general-xavier-becerra-sues-profit-ashford-university-defrauding-and |title=Attorney General Xavier Becerra Sues For-Profit Ashford University For Defrauding and Deceiving Students |website=State of California Department of Justice |date=November 29, 2017 |access-date=August 4, 2020}}</ref>

In January 2018, the VA allowed Ashford to continue to receive GI Bill funding pending completion of the university's attempt to get approval from the much stricter state of California;<ref>{{cite news|url=https://www.chronicle.com/article/va-backs-off-threat-to-cut-gi-bill-funding-for-ashford-university/ |title=VA Backs Off Threat to Cut GI Bill Funding for Ashford University |first=Michael |last= Vasquez |work=The Chronicle of Higher Education |date=January 9, 2018 |access-date=August 4, 2020}}</ref> California denied approval for the third time in December 2018.<ref name="casts doubt"/> Reports by journalists, watchdogs, whistleblowers, and politicians alleged that Ashford University engages in misleading and predatory practices to enroll GI Bill students, particularly during the Trump administration and the Betsy DeVos-led education department deregulations.<ref name="casts doubt"/><ref>{{cite news|url=https://www.nbcnews.com/politics/politics-news/veterans-could-be-first-pay-devos-rolls-back-profit-college-n985891 |title=Veterans could be first to pay as DeVos rolls back for-profit college oversight |first1=Heidi |last1=Przybyla |first2=Laura |last2=Strickler |work=NBC News |date=April 14, 2019 |access-date=August 4, 2020}}</ref><ref>{{cite news|url=https://hechingerreport.org/scrutiny-of-colleges-that-get-billions-in-gi-bill-money-remains-mired-in-bureaucracy/ |title=Scrutiny of colleges that get billions in GI Bill money remains mired in bureaucracy |first=Jasper |last=Craven |work=The Hechinger Report |date=December 11, 2019 |access-date=August 4, 2020}}</ref><ref name="sounds-the-alarm">{{cite news|url=https://www.stripes.com/news/us/vets-group-sounds-the-alarm-after-va-greenlights-controversial-ashford-university-for-gi-bill-funds-1.619756 |title=Vets group sounds the alarm after VA greenlights controversial Ashford University for GI Bill funds |first=Steve |last=Beynon |work=Stars and Stripes |date=February 21, 2020 |access-date=August 4, 2020}}</ref><ref name="vetsedsuccess">{{cite web|url=https://vetsedsuccess.org/press-release-veterans-education-success-responds-to-vas-decision-to-approve-ashford-university-for-gi-bill-funds/ |title=Veterans Education Success Responds to VA's Decision to Approve Ashford University for GI Bill Funds |website=Veterans Education Success |date=February 20, 2020 |access-date=August 4, 2020}}</ref> In February 2020, the VA superseded California's oversight and granted Ashford University approval to use GI Bill funding.<ref>{{cite news|url=https://www.insidehighered.com/quicktakes/2020/02/18/ashford-resolves-4-year-dispute-over-gi-bill-benefits |title=Ashford Resolves 4-Year Dispute Over GI Bill Benefits |first=Paul |last=Fain |work=Inside Higher Ed |date=February 18, 2020 |access-date=August 4, 2020}}</ref><ref>{{cite news|url=https://www.educationdive.com/news/in-california-va-ends-ashford-us-gi-bill-benefits-uncertainty/572498/ |title=In California, VA ends Ashford U's GI Bill benefits uncertainty |first=Hallie |last=Busta |work=Education Dive |date=February 18, 2020 |access-date=August 4, 2020}}</ref> The veterans' advocacy group Veterans Education Success strongly objected to the granting of GI Bill funding to Ashford, saying that the university "engage[s] in deceptive advertising [and] recruiting".<ref name="sounds-the-alarm"/><ref name="vetsedsuccess"/>

==References== {{Reflist}}

==External links== * [https://www.zovio.com/ Official site] {{Webarchive|url=https://web.archive.org/web/20200513063151/https://www.zovio.com/ |date=May 13, 2020 }}

Category:Companies based in San Diego Category:Companies listed on the New York Stock Exchange Category:Distance education institutions based in the United States Category:Education companies of the United States Category:Companies listed on the Nasdaq