BRIDGEPOINT EDUCATION, INC. (NYSE:BPI) Files An 8-K Other EventsItem 8.01Other Events.
As previously disclosed in the Current Report on Form 8-K filed on November 13, 2017, on November 9, 2017, the U.S. Department of Veterans Affairs (the “VA”) informed Ashford University that the Arizona State Approving Agency has not provided sufficient evidence to establish that it has jurisdictional authority over Ashford’s online programs and as a result the VA intends to suspend payment of educational assistance and approval of new enrollments and reenrollments for Ashford University’s online programs in 60 days unless corrective action is taken. Ashford University strongly disagrees with the VA’s interpretation of the relevant regulations and intends to vigorously challenge the VA’s action through all appropriate forums.
Although not required to do so, on November 14, 2017, Ashford University decided to temporarily suspend new enrollment of veteran students utilizing GI Bill benefits. Our veteran students comprise approximately 10% of our total enrollment and we currently estimate that our veteran students will generate approximately 7% of our revenue during fiscal 2017. The decision to temporarily suspend new veteran enrollments will not have a material impact on our results for the remainder of the year.
In addition, if Ashford University is ultimately unsuccessful in challenging the VA’s action, it could adversely impact Ashford University’s participation in the U.S. Department of Defense Tuition Assistance Program for active duty military personnel. If Ashford University were to lose all access to military affiliated student funds, it would still be in compliance with the 90/10 Rule. At this time, we cannot predict the eventual outcome, and any potential delays, gaps or termination in military benefits could have a material adverse effect on current and future military student enrollment and the Company’s revenues, financial condition, cash flows and results of operations.
About BRIDGEPOINT EDUCATION, INC. (NYSE:BPI)
Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies, which offer associate’s, bachelor’s, master’s and doctoral programs online, as well as at the campuses located in Iowa and Colorado, respectively. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. The Company is also developing Constellation, Waypoint Outcomes and mobile application technology. The Company has approximately 49,160 students enrolled in its institutions. The Company’s institutions offer approximately 1,850 courses, over 80 degree programs and approximately 150 specializations. Its institutions offer programs and specialization areas through the University of the Rockies’ two schools: the School of Organizational Leadership and the School of Professional Psychology.