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San Diego's Bridgepoint Education closed Thursday at $18.48. That's up from $15.26 on Dec. 1. According to Bloomberg News, for-profit colleges like Bridgepoint are boosting their spending on lobbying to thwart funding restrictions proposed by the U.S. Department of Education. The "gainful employment" restriction would tie eligibility for student-aid programs to graduates' incomes and loan repayment rates, explains Bloomberg. (For-profit colleges have only 10% of the nation's higher education students, but account for 44% of debt defaults). Bridgepoint relies on federal money for 85% of its income.

Bloomberg reports that ten for-profit companies and their trade association spent $3.8 million on lobbying in the first ten months of 2010, up from $1.5 million in the comparable period of 2009. For-profit colleges are hiring ex-members of Congress as lobbyists. According to Bloomberg, Bridgepoint hired Al Wynn, a Maryland Democrat who belonged to the Congressional Black Caucus, and Tim Hutchinson, an Arkansas Republican.

Bridgepoint has also bought its way into the San Diego establishment. Among several things, Dec. 30 is the date of the Bridgepoint Education Holiday Bowl at Qualcomm Stadium.

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Comments

SurfPuppy619 Dec. 24, 2010 @ 3:28 p.m.

The era of the "for profit" college is coming to an end, the student loan bubble will guarantee that. The era of double digit tuition raises will also come to an end soon, for all colleges.

BTW, there was an awesoem CNBC special on student lonas last Tuesday, check it out of it shows back up on the TV;

. http://www.newsonnews.net/cnbc/6349-cnbc-to-air-documentary-focusing-on-america-s-college-debt-crisis.html .

. http://www.cnbc.com/id/39911910/ .

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Don Bauder Dec. 24, 2010 @ 7:44 p.m.

The welcome end of the for-profit colleges may be a long time away at the rate they are paying off our Congressional leaders. Best, Don Bauder

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Don Bauder Dec. 24, 2010 @ 10:34 p.m.

Is this an advertisement? Best, Don Bauder

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SurfPuppy619 Dec. 25, 2010 @ 11:08 a.m.

yes, if you get a chance to see the documentary watch it!

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Don Bauder Dec. 24, 2010 @ 11:02 p.m.

BRIDGEPOINT'S CHIEF EXECUTIVE NUMBER ONE ON LIST OF 2010'S TEN GREEDIEST. "Too Much," an online weekly on excess and inequality published by the Washington, D.C.-based Institute for Policy Studies, is out with 2010's ten greediest Americans. The list includes Lloyd Blankfein, chief executive of Goldman Sachs, who since 2000 has raked in $125 million in bonuses and $300 million worth of Goldman Shares. Another is Mark Hurd, who as chief executive of Hewlett Packard from 2005 through 2009 pocketed $134.2 million, as he killed 40,000 jobs. He got fired for wining and dining a former erotic actress and cooking the books to cover up his rendezvous. But he got a severance package that may add up to $40 million and has a new job paying $11 million a year.

Number one on the list is Andrew Clark, chief executive of San Diego's Bridgepoint Education. For-profit education companies are "hoodwinking vulnerable young people into taking on taxpayer-financed student loans they cannot possibly repay," says the publication. No one is raking in more than Clark, who gobbled up $20.5 million in the latest fiscal year. As the New York Times reported (and the Reader picked up), Bridgepoint has been spending more on marketing than on educating its students.

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Visduh Dec. 26, 2010 @ 12:17 p.m.

So, Bridgepoint takes in millions in tuition and fees, pays its instructors little, and stuffs a huge chunk of the income into its CEO's pockets. Isn't that American enterprise at work? Not when the income is taxpayer money lent to students for the purpose of self-betterment. This sort of thing has happened a number of times in recent years involving charter schools in the area, wherein the chartering district provided none of its mandated oversight, and the little charter school advisory board conceded that it didn't know how to run a school. The answer for several of those was to hire a for-profit company to operate the school. Then it is learned that the head of the company raked off more money than the company paid for all the operations.

A classic case of trying to mix the private and public sectors and getting the worst of both.

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Don Bauder Dec. 26, 2010 @ 4:45 p.m.

Don't call it corporate welfare, says the establishment. Call it public-private cooperation. And although the private sector rakes in money without any performance, anybody who opposes the thievery is called an obstructionist or small town undertaker. Best, Don Bauder

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SurfPuppy619 Dec. 26, 2010 @ 4:50 p.m.

anybody who opposes the thievery is called an obstructionist or small town undertaker

That is a hallmark of the Chargers and their butt kissers-San Diego will never be a major first class city wihtout a football team!

NY has no football team and they are doing fine (The Jets and Giants both play in New Jersey).

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Don Bauder Dec. 26, 2010 @ 6:06 p.m.

Yeah, but the Giants and Jets are really New York City teams. You are correct that the San Diego establishment has always had the idea that the city will never be recognized as first class without pro football and baseball teams. LA has done without pro football for a decade and a half and it's not clear that there is big public support for either proposed stadium, City of Industry or downtown LA. Best, Don Bauder

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Founder Dec. 27, 2010 @ 8:17 a.m.

The "San Diego establishment" are the same folks that are taking the City to the Cleaners, so who cares what they say!

I think of all them as $PINNING for Dollars...

SD "will never be never be recognized as first class" BECAUSE of those same folks... Pretty hard to be first class if your City has a poor Quality of Life and massive debt which makes keeping Library's open and fixing basic infrastructure repairs not possible!

  • Now that the Chargers season is over, I bet even the Guacamole Bowl Stadium secret deal will not discussed in public until next season to "keep the City's options open" for more debt!
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Don Bauder Dec. 27, 2010 @ 11:17 a.m.

More than one prominent member of the establishment argue that taxpayers are too unsophisticated to vote on such matters as spending taxpayer money to build a new civic center. No doubt that argument will be trotted out if the stadium deal ever goes forward. Right now, any stadium movement looks several years off, particularly if 2011 is a strike or lockout year. Best, Don Bauder

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SurfPuppy619 Dec. 27, 2010 @ 4:31 p.m.

More than one prominent member of the establishment argue that taxpayers are too unsophisticated to vote on such matters as spending taxpayer money to build a new civic center

LOL..one of the WORST statements to ever come out of Malin Burnham's mouth!!!!

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MURPHYJUNK Dec. 27, 2010 @ 9:11 a.m.

all that is needed is to type in the name ( eg. Bridgepoint Education) or any one of the pay for education schemes into google followed by the word scam to see what unhappy clients have to say.

It should be one of the first steps when dealing with anything costing "big bux"

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Don Bauder Dec. 27, 2010 @ 11:19 a.m.

Oh yes, there are screams about Bridgepoint online, particularly on scam sites. I quoted a couple in one of my early articles on this company. Best, Don Bauder

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Founder Dec. 27, 2010 @ 11:31 a.m.

I hope we will soon have Scam sites for all City Leaders...

I'm glad you have Scam Diego "cornered"...

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Don Bauder Dec. 27, 2010 @ 5:30 p.m.

You have a good idea. Somebody should set up a website following every dishonest act by all elected politicians. Best, Don Bauder

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Don Bauder Dec. 27, 2010 @ 5:33 p.m.

Yes, those complaint boards are full of Bridgepoint facts. And the Reader isn't the only publication following this very questionable company. Best, Don Bauder

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MURPHYJUNK Dec. 27, 2010 @ 1:19 p.m.

darn, just typing in Jerry Sanders and the word scam gets About 50,300 hits

it would be a career looking up all the city "officials"

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Founder Dec. 27, 2010 @ 3:59 p.m.

To bad all those that look don't vote:-)

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Don Bauder Dec. 27, 2010 @ 5:35 p.m.

Yeah, but the voters keep swallowing the lies. Best, Don Bauder

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Don Bauder Dec. 27, 2010 @ 5:34 p.m.

Did all the scams take place after he was elected. Or were some before? Best, Don Bauder

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jham88 Dec. 30, 2010 @ 5:59 p.m.

The huge news today was that Chris Spohn, Chief Admissions Officer at Bridgepoint, is leaving effective tomorrow. The company spokesperson stated that he was leaving to try other things and wasn't being forced out.

I suspect that is B.S. and we will know more in the coming weeks. He is the fall guy for anything done wrong with enrollment practices at BPI. At least that is what I suspect to be more plausible.

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Don Bauder Dec. 31, 2010 @ 9:39 a.m.

If the Department of Education blames everything on Spohn, and then implies that everything is clean now that Spohn is gone, there should be an investigation of Department of Education corruption. It will be interesting to see if the department caves now that the for-profit colleges' lobbyists are descending upon Washington with fistfuls of cash for the solons. Best, Don Bauder

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jham88 Dec. 31, 2010 @ 3:56 p.m.

Don:

I hope the Arnie Duncan gets a hell of a lot tougher because the reality remains that gainful employment opportunities are clearly not here now or in the foreseeable future.

My remedy is to eliminate a large chunk of the federal student loand monies made available for students to got to school. This will have some unintended conseqences in the Public Programs surely but it will ratchet back the impending student loan default crisis that is clearly building up steam.

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Don Bauder Dec. 31, 2010 @ 4:19 p.m.

This is why it is important that the grads of these schools find the meaningful employment that telemarketers promise them. And they won't. Best, Don Bauder

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SurfPuppy619 Dec. 31, 2010 @ 6:34 p.m.

I hope the Arnie Duncan gets a hell of a lot tougher because the reality remains that gainful employment opportunities are clearly not here now or in the foreseeable future.

============================ And the future is no where as bleak as that for ABA law school graduates-even from T-14 LS's, where there is almost no hiring.

University of Michigan LS, a top 10 LS, had companies from INDIA in their on campus job interviews-hiring grads to supervise outsourced legal work in India! When it gets this bad for a top 10 LS grad, what does that say for the rest of us???

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Don Bauder Jan. 1, 2011 @ 8:17 a.m.

The positive of permitting this student debt to be disposed of through bankruptcy court is that a number of troubled young people would be relieved of a great burden. The negative is that the for-profit colleges would be able to sweeten their pitches and escalate their fraudulent ways -- unless protections were written into the legislation. Best, Don Bauder

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SurfPuppy619 Jan. 1, 2011 @ 2:30 p.m.

The positive of permitting this student debt to be disposed of through bankruptcy court is that a number of troubled young people would be relieved of a great burden.

Under the old rules the debt had to be in defautl for at least 7 years before diacharge, not to mention that the BK stays on the record for 10 years. Only 1 out of every 200 BK's had student loans listed when the ruels allowed it.

I agree that once SL'a are again allowed to be discharged that we will see the true extent of the fraud, and the true extent that nearly all schools-including "non profit"- contributed to this mess by jacking tuition at 3 times the rate of inflation.

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Don Bauder Jan. 1, 2011 @ 8:12 a.m.

There is a surfeit of lawyers. Has been for some time. Best, Don Bauder

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anncarl Jan. 5, 2011 @ 3:43 a.m.

Chris Spohn should not be the fall guy...he and Jeff Cross were the only ones that had real integrity. Andrew Clark, who constantly refers to himself as " THE CEO" is the guy!

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