Reuters: Global Markets: HLC seeks compliance report from Bridgepoint

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HLC seeks compliance report from Bridgepoint Jul 13th 2012, 13:36 Fri Jul 13, 2012 9:36am EDT (Reuters) - Bridgepoint Education (BPI.N) said its accreditation body has asked it to submit a report proving that its university is in compliance with the commission's guidelines, after the institution was denied accreditation by another agency. Bridgepoint shares, which have lost 40 percent of their value this week, were trading down 11 percent at $11.50 on Friday on the New York Stock Exchange. Higher Learning Commission (HLC), to which Bridgepoint's Ashford University is accredited, wants the report by August 10. The university has been put on 'special monitoring' status, which means that the HLC can evaluate accreditation without the usual review procedures. The HLC was not expected to review its accreditation before 2014-15. Bridgepoint has been trying to switch the university's accreditation to the Western Association of Schools and Colleges (WASC) from the HLC, but the WASC earlier this week refused accreditation. Rejecting the application, the WASC had said Ashford University spends more money on recruiting students than on teaching them. "Given the WASC denial, we are not completely surprised by the HLC's heightened scrutiny, though we expect this may put further pressure on the stock," said analyst Jeff Silber of BMO Capital. Loss of accreditation to Ashford University can deny the university access to federal student aid, which makes up for most of the parent company's revenue. The HLC has asked Ashford University to prove that it has an effective way to monitor student learning and outcomes. It has also been asked to establish its autonomy from Bridgepoint, and prove that it spends sufficient money on student retention and education. Ashford University is required to a host an advisory visit by the HLC by October 9, Bridgepoint said in a statement on Friday. HLC will review the report of the visit team in February. The commission had recently asked the company to demonstrate "substantial presence" in the 19-state north central region by December 1 this year. (Reporting by Megha Mandavia in Bangalore; Editing by Sreejiraj Eluvangal, Saumyadeb Chakrabarty) Link this Share this Digg this Email Reprints

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