Students of Ashford University and University of the Rockies are due for a refund amounting to $23.5 million, according to the Wall Street Journal.
Bridgeport Education, Inc., a for-profit education company, runs these schools, and it just got the shakedown by the Consumer Financial Protection Bureau (CFPB).
The CFPB said Bridgepoint advertised in-house student-loan payment plans as low as $25 per month, although such a generous repayment plan was far from likely. And that false advertising is going to cost the company, big-time.
Almost 1,300 People Will Say Goodbye to Student Loans
After paying an $8 million fine to the CFPB, Bridgepoint will refund about $5 million to students who had started paying back loans issued between 2009 and 2013. Bridgepoint will then forgive the remaining $18.5 million outstanding on such loans.
Approximately 1,277 current and former students are affected, according to a Bridgepoint press release.
In addition, all students of Bridgepoint institutions will need to use the CFPB’s financial-aid-disclosure tool. The online tool guides users through college costs, financial aid and repayment options, and potential earnings after graduation.
“The quality of the education Bridgepoint institutions are providing to students or the value of the degrees they are working towards was not disputed by the CFPB,” Bridgepoint’s statement declared.
Your Turn: Did you attend Ashford University or University of the Rockies? How excited are you about your refund?
Lisa Rowan is a writer and producer for The Penny Hoarder.