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Ashford University appeals $22 million ruling for misleading students

Ashford's parent company, Zovio, says the ruling was unfair and the penalty excessive.
Credit: CBS8
Ashford University

SAN DIEGO — Ashford University, the former San Diego-based online for-profit university is seeking to overturn a $22.37 million court ruling that found college staff misled students and lead them into a mountain of debt.

Ashford University's parent company Zovio, formerly known as Bridgepoint Education, filed its appeal earlier this week in the lawsuit filed by the State of California.

In March, San Diego Superior Court Judge Eddie Sturgeon found Ashford's admissions counselors targeted lower-income, older students, luring them in with exaggerated career opportunities, low tuition, and chances at financial aid.

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"[Ashford] created a high-pressure admission department whose north star was enrollment numbers," read the March 3, 2022 ruling. "...former Ashford employees testified that they gave half-truths, or even outright lied, in order to 'overcome objections' that risked derailing enrollment."

Those false promises, read Sturgeon's ruling, included claims that students could use their degrees to become teachers when that was not the case. 

According to court documents, at its peak, Ashford was enrolling 10,000 new students a year.

After the decision, California Attorney General Rob Bonta said " “Ashford made false promises to students about the value of an Ashford degree, leaving students with mounting debt, broken promises, and searching for a job."

However, parent company Zovio says the judge was wrong and the penalty is "grossly disproportionate."

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In a statement, Zovio said the judge relied on evidence found from a small percentage of total calls made to prospective students. The company also said that judge imposed penalties without looking at the company's overall value.

 Zovio's Chief External Affairs Officer, Vickie Schray, said Zovio, "continues to move forward with plans to turn around the company and maintain focus on serving clients and their students."

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