Dive Brief:

• For-profit online education provider Bridgepoint Education Inc. and its Ashford University subsidiary have agreed to pay $7.25 million to settle allegations of misleading and coercing prospective students in Iowa.
• About 5,000 Iowa students who participated in online courses could be eligible for reimbursement from the settlement funds.
• Iowa Attorney General Tom Miller announced the settlement, which comes after a three-year investigation into complaints that Ashford coerced student recruits and omitted information they needed to make informed decisions. 

Dive Insight:

According to the Associated Press, the settlement agreement also prohibits Ashford from using misleading advertisements or coercive tactics to increase enrollment, and from implying that licensure or certification is guaranteed upon completion of a degree program when, in reality, more steps may be necessary. Ashford is also required to provide a free two-week online orientation for all incoming associate and bachelor degree students who have no previous college experience, and students will be allowed to withdraw from their first course within the first three weeks without being charged.