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Stock of San Diego's Bridgepoint Education, San Diego's highly controversial for-profit, online university, is down 13.24% this morning (Oct. 14) as a negative forecast from the industry's Mr. Big, Apollo Group, reverberated around the whole sector. Apollo, which runs the University of Phoenix, withdrew its outlook for fiscal 2011 and said it expects a "significant" enrollment decline in the current quarter. Apollo cited the "uncertain regulatory environment" in its statement. The Senate recently held hearings, looking into charges that the for-profit colleges rake in federal money while providing an inadequate education, use deceptive sales tactics and fraudulent loan applications, and have high dropout rates and higher tuitions. The Department of Education has proposed a "gainful employment" rule that would slice financing to colleges that turn out students who can't get the jobs necessary to pay off their federal debt. Implementation has been delayed, but the Department of Education expects to have new rules in place in July.

Bridgepoint has been under the Department of Education investigative microscope for some time. The stock is trading at $14.87 this morning; it has been as high as $27.50 in the last 52 weeks and as low as $12.75.

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Comments

Robert Hagen Oct. 14, 2010 @ 11:46 a.m.

Exactly.

What a crying shame that so many people use the system, instead of contributing great journalism.

I learn from Don Bauder.

When people realize that journalism really is the basis for a free nation, especially in this day and age, we'll all be better off.

Don Bauder, you tell it like it is.

I wish I could promise you that what you do will go on, but I can't.

However, I'm in in negotiations.

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Don Bauder Oct. 14, 2010 @ 12:58 p.m.

Response to post #1: At some point, one has to decide whether to fight 'em or join 'em. Both my wife and I decided to use our knowledge to fight the system. We don't regret it. Even our two sons, who will inherit less because we chose to fight, don't disagree with our decision. Best, Don Bauder

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dwbat Oct. 17, 2010 @ 8:48 a.m.

NOTE: Bridgepoint CEO Andrew S. Clark was a former regional VP at the University of Phoenix. He founded Bridgepoint in 2004. Bridgepoint does not issue dividends nor offer a dividend reinvestment plan (DRIP). The company will release its third quarter financial results on November 2 before the market opens.

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Don Bauder Oct. 17, 2010 @ 10:46 a.m.

Response to post #3: Yes, the Bridgepoint CEO cut his teeth at the University of Phoenix, parent of Apollo Group. Best, Don Bauder

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jham88 Oct. 17, 2010 @ 5:12 p.m.

I saw the stock drop last week and then read why. I was relieved. I don't know who I blame more for this racket Washington or Andrew Clark. Did Washington D.C. turn it's back on poor people just long enough for Andrew Clark to swoop in and get rich on the American Taxpayer or is Washington D.C. just plain corrupt? Or Stupid?

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Don Bauder Oct. 18, 2010 @ 11:17 a.m.

Response to post #5: I think Washington stupidity, not corruption, is the villain here. Government set up all these programs to lend money to students without realizing that some institutions -- particularly the for-profit ones -- would disingenuously take advantage of the manna flow. Now the huge number of defaults buy those who signed up for for-profit schools is economically threatening. Best, Don Bauder

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Anon92107 Oct. 19, 2010 @ 4:10 p.m.

Response to post #2: Don, your statement is most inspiring, and your dedication to truth and integrity in journalism makes you a role model in all categories of American citizenship.

Relative to UC and for-profit colleges, Wikipedia exposed the following fact about Mr. Feinstein-Blum: "In 2009 the University of California Board of Regents, of which Blum is a member, voted to increase student registration fees (roughly the Univ. of California equivalent of tuition) by 32%. Shortly thereafter, Blum Capital Partners purchased additional stock in ITT Tech, a for-profit educational institution. These events suggest a conflict of interest on Blum's part."

Relative to UC and "Potentially Biased Oil Research Contracts" BP was the final sellout of what may have been left of UC integrity, by the current Secretary of Energy Chu no less, while he was still perpetuating hydrogen bombs for profit instead of producing controlled fusion to save the human race from global warming.

No President in history was more correct in predicting the total corruption of UC when he said: "The prospect of domination of the nation's scholars by Federal employment, project allocations, and the power of money is ever present – and is gravely to be regarded." in his 1961 Farewell Address. Humanity will pay a totally unacceptable price for the corruption of UC.

Keep up the heat on corruption Don, there is no one better. Thank You.

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Don Bauder Oct. 19, 2010 @ 4:50 p.m.

Response to post #7: Yes, Dwight David Eisenhower, who had been a university president after WWII, correctly foresaw the dangers that were coming. Unfortunately, the nation didn't follow his advice. Best, Don Bauder

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jham88 Oct. 28, 2010 @ 9:54 a.m.

How impactful will these new regulations be on Bridgepoint and the others?

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