Durbin Statement On CFPB Action Against For-Profit Bridgepoint Education
WASHINGTON – U.S. Senator Dick Durbin (D-IL) released the following statement after the Consumer Financial Protection Bureau (CFPB) announced that it would take action against Bridgepoint Education, Inc. for illegal student lending practices. The CFPB has ordered Bridgepoint to discharge all outstanding private student loans and refund students’ payments on private loans borrowed from the school. Additionally, Bridgepoint must pay an $8 million penalty for deceiving students and will be required to inform incoming students, and current students beginning new programs of study, of their eligibility for federal financial aid though a new financial aid disclosure tool.
“Today’s action by the Consumer Financial Protection Bureau to require Bridgepoint Education, Inc., owner of Ashford University, to refund $23.5 million in private student loans is a win for students and just one more example of the predatory practices for which for-profit colleges are now infamous,” said Senator Durbin. “Whether it’s Corinthian, ITT Tech, or now Bridgepoint, this industry’s record of exploiting students is now catching up with it. The key question remains: When will Congress accept its responsibility to oversee and regulate this for-profit college industry to protect students and taxpayers.”
Bridgepoint Education, Inc. operates Ashford University and University of the Rockies. In addition to today’s CFPB action, Bridgepoint is under investigation by four state Attorneys General, the Securities and Exchange Commission, and the Department of Justice.