Bridgepoint Education Inc., the for-profit owner of Ashford University, is under investigation by the U.S. Department of Justice over claims that it “may have misstated Title IV refund revenue or overstated revenue associated with private secondary loan programs,” according to a corporate filing on Tuesday.
According to Bridgepoint, the inquiry concerns whether the company violated the federal 90/10 rule, which prohibits colleges from receiving more than 90 percent of their revenue through federal student aid.
This isn’t the first time Bridgepoint has been investigated by the Justice Department. In 2012 the company disclosed an investigation by the department into the compensation of its admissions staff.
And late last year the company said the U.S. Department of Education’s Office of Federal Student Aid had opened an investigation into its marketing practices.
The company said it was cooperating with the Justice Department’s demand for information.