Two U.S. senators have shared their concerns over the University of ÃÛèÖÖ±²¥â€™s agreement to purchase a for-profit college and use it’s assets to bolster its online offerings.
Sen. Dick Durbin, D-Illinois, and Sherrod Brown, D-Ohio, said in a letter to UA President Robert Robbins that the university must take steps to ensure students are not taken advantage of.
“Without clear protections for students built into this transaction by UA, its accreditors and the Department of Education, ÃÛèÖÖ±²¥ taxpayers risk becoming owners of a predatory for-profit college cloaked in the aura of your prestigious university,†the senators wrote.
The UA agreed to purchase Ashford University for $1 and add its assets — including the San Diego school’s 35,000 online students — to create the University of ÃÛèÖÖ±²¥ Global Campus. The new platform will be a separate nonprofit, fully online entity. It will serve as an expansion of the Global Campus, made up of 150 sites worldwide.
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UA officials said the 18- to 22-year-old population makes up most of its students, but the deal would boost UA’s support for nontraditional and underrepresented students as well as its online offerings.
“It helps us to serve a population of students that are often left behind and those are individuals who may not have had the opportunity for whatever reason to go to a university out of their high school education,†said Robbins. “These are primarily working adults, and I am very excited and proud that the University of ÃÛèÖÖ±²¥ is going to serve this population of students.â€
Ashford’s owner, Zovio, which is an education technology services company, will pay $25 million annually for the first five years of a $225 million, 15-year agreement, according to an SEC filing. It will then pay $10 million annually to complete the contract before being up for a renewal.
The agreement also calls for Zovio to receive annual tuition revenue to the tune of 19.5% after the UA Global Campus covers its direct costs of operations.
Zovio providing its recruiting, student advising and financial aid counseling services is one of the points of concern for the senators due to the for-profit college being in legal trouble in recent history.
“The organization — and in some cases individuals — responsible for Ashford’s shameful record as a for-profit college are slated to continue to be responsible for a variety of key functions of the UA Global Campus — many of those the very functions for which Ashford was investigated and sued.â€
Zovio, formerly known as Bridgepoint Education, is still facing a San Diego Supreme Court case set for April 2021. A suit was brought against the company by the state of California in 2017 for allegedly using its admissions office to make false promises regarding prospective students’ financial aid to get them to enroll.
Illegal debt collection practices were then used to get the struggling students to pay their bills, according to California Attorney General Xavier Becerra, who filed the lawsuit.
“Ashford, now owned by Zovio, has been a major player during a period of the last two decades that a group of state attorneys general referred to as “open season†on students because of the systemic defrauding of students and fleecing of taxpayers across the for-profit college industry,†the senators’ letter said.
In 2014, Zovio paid a $7.25 million settlement with Iowa Attorney General Tom Miller for consumer fraud.
“Unfortunately for many Ashford students, they did not receive the degree they had hoped for or the job they were led to believe they would be offered after graduating. What they did end up with was a crushing amount of student loan debt,†Miller said following the three-year investigation.
In 2016, Zovio was ordered to pay $30 million by the Consumer Financial Protection Bureau for deceptive acts, including misleading students regarding their loans.
Robbins pointed to the WASC Senior College and University Commission, the regional accrediting agency for Ashford, saying the main concerns around these practices had been addressed in its latest report.
“As we did our academic due diligence, governance due diligence and business due diligence, we were satisfied that we could go in, take over this university, serve the students and provide our mission support of being a land grant university,†Robbins said.
Meanwhile, the senators recommended the UA’s Global Campus’ Board of Trustees should have clear policies in place, including “independent oversight structures†and an elimination of class-action bans, which force students to give up their rights to sue or join a class-action suit against an entity that may have caused them harm.
The senators’ letter only added to the list of concerns, some of which echoed previous topics mentioned by a group of six professors within the UA’s Eller College of Management. They were one of several groups consulted in June about the potential Ashford purchase.
Under a nondisclosure agreement, the UA administration unveiled more information about the proposed agreement naming it the “DigiCat Project†and changing the names of Ashford and Zovio to “Antelope†and “Zebra†respectively.
The professors called the deal a potential “catastrophic mistake†and presented their reservations in a response to the administration.
“A quick google search reveals that less than 29% of their students graduate … the average student leaves with $36,000 in debt,†the group said about Ashford.
“Furthermore, enrollment at Antelope (Ashford) University has dropped by an average of 10.54% per year over the past seven years. If this trend continues, we estimate that Antelope University will lose somewhere between $35 million to $94 million per year over the next five years. Hence, we believe the DigiCat project is a bad investment.â€
The group also said associating with Ashford University and its history of predatory practices could harm the UA’s efforts to attract instructors and donors.
Robbins said earlier this month he’s mindful of things that may effect UA’s brand.
“One of the issues is that Ashford was a for-profit university, and there have been practices around aggressive recruiting and individuals not finishing their degrees but having large debt,†Robbins said. “I think we’ve got to execute and make sure that we deliver a high-quality, ethical education to these students, and I’m confident that we will do that or I wouldn’t have agreed to do this deal.â€
Photos: University of ÃÛèÖÖ±²¥ campus, then and now
University of ÃÛèÖÖ±²¥ campus
Typical classroom on the second floor of the University of ÃÛèÖÖ±²¥'s new Anthropology Building. "Introductory Course in Archaeology" is being taught by Dr. Raymond H. Thompson, associate professor of anthropology.
University of ÃÛèÖÖ±²¥ campus
Meinel Optical Sciences building taken on the campus of the University of ÃÛèÖÖ±²¥ in 2008.
University of ÃÛèÖÖ±²¥ campus
McClelland Park building which houses the Family Studies program in 2008.
University of ÃÛèÖÖ±²¥ campus
An exterior photo of the New Student Union on the UA campus in 2003.
University of ÃÛèÖÖ±²¥ campus
Construction workers work in 2006 on the walkway that connects the University of ÃÛèÖÖ±²¥â€™s new College of Medicine buildings (left) and the new Thomas W. Keating Bio Recourse Building home to the Bio5.
University of ÃÛèÖÖ±²¥ campus
After its first semester in use in 2002, the underground Integrated Learning Center on the UA mall has drawn mostly rave reviews, especially for its natural light and technology.
University of ÃÛèÖÖ±²¥ campus
Soldiers training for World War I were among the first to use the University of ÃÛèÖÖ±²¥'s first official infirmary. Started in 1919, the infirmary occupied the former home of Reuben R. Schweitzer. Today, the site is occupied by the Koffler Building.
University of ÃÛèÖÖ±²¥ campus
Incoming freshmen at the University of ÃÛèÖÖ±²¥ in the fall will see their tuition remain the same for four years. The ÃÛèÖÖ±²¥ Board of Regents approved a 5.4 percent hike in tuition for freshman, but included the rate guarantee.
University of ÃÛèÖÖ±²¥ campus
UA Senior Carrie Rituper conducts the UA Band, during band practice on the McKale Lawn of the UA Campus in 1997.
University of ÃÛèÖÖ±²¥ campus
The University of ÃÛèÖÖ±²¥'s Old Main in 2012.
University of ÃÛèÖÖ±²¥ campus
Hushed conversations and the rustling of papers were replaced by silence in the main reading room of the old University of ÃÛèÖÖ±²¥ Library at 1013 E. University Blvd. On Feb. 25, 1977, the building stood empty as its collections had been moved down the street to the new UA library. Construction on the original building was begun in 1924, and cost $475,000. Three subsequent additions to the building brought the square footage up to 97,000, but its library days were over. The ÃÛèÖÖ±²¥ State Museum moved into the space.
University of ÃÛèÖÖ±²¥ campus
Old Main on the UA campus in 1906.
University of ÃÛèÖÖ±²¥ campus
University of ÃÛèÖÖ±²¥'s Old Main, the oldest building on the campus. Taken in 1998.
University of ÃÛèÖÖ±²¥ campus
in 1974, a fireball took the place of the traditional shovel during groundbreaking for the University of ÃÛèÖÖ±²¥'s new Grace Flandrau Memorial Planetarium at North Cherry Ave. and campus mall. The science fiction ceremony, complete with a space age (but not working) laser, was staged to emphasize the contributions the new facility will make to the public's understanding of science. UA President John P. Schaefer pressed the button that ignited an acetylene filled balloon into the fireball that "broke" bround for the new building.
University of ÃÛèÖÖ±²¥ campus
One of the new additions to the University of ÃÛèÖÖ±²¥ campus during 1967 was the Psychology Classes building. Cost of the structure was $2,279,760. It les immediately east of the new Modern Languages building on the site of the former tennis courts. The UA psychology department has one of the nation's best reputations in that academic field.
University of ÃÛèÖÖ±²¥ campus
Dec. 9, 1964 The University of ÃÛèÖÖ±²¥ will begin using this new $1,306,800 women's physical education building on Jan. 4. It is located between East Second and Third streets, and North Warren and Martin avenues, and contains a pool, two gymnasiums, a dance floor and 4,000 lockers. There is a large athletic field on the site. The new building was designed by architects Place & Place and built by M.M. Sundt Construction Co.
University of ÃÛèÖÖ±²¥ campus
8-25-54 University of ÃÛèÖÖ±²¥ Campus ÃÛèÖÖ±²¥ resident sent C. C. Stevens to the 13th territorial legislature to bring back the state capitol, the state prison or the state asylum. Instead, he returned with authorization for the University of ÃÛèÖÖ±²¥-which nobody; including residents of the Old Pueblo, wanted. The beautiful 85-acre campus now has 55 buildings, 10 colleges, offers nearly 900 courses of instruction by a faculty of more than 650. From top of the administration building, whre this picture was taken, Old Main can be seen at left. It was the university's first building, and was completes in 1891. At right is new million-dollar student union memorial building.
The last time we saw Fleetwood Mac
It was 1977 and the fans of the rock band packed UA Staduim. It was the last time the football stadium was used for a concert.
University of ÃÛèÖÖ±²¥ campus
Aerial view University of ÃÛèÖÖ±²¥, Football Stadium and Baseball Field. December 2, 1946.
University of ÃÛèÖÖ±²¥ campus
Dec. 28, 1966 Exterior lighting shows off the new University of ÃÛèÖÖ±²¥ administration building, which dominates the center of the campus in this twilight scene. The $1.5 million building faces south along the mall. The building was designed by Place & Place, Architects, and was built by M. M. Sundt Construction Co.
University of ÃÛèÖÖ±²¥ campus
Alumi Plaza and the Administration building, center, taken on the campus of the University of ÃÛèÖÖ±²¥ on October 9, 2008.
University of ÃÛèÖÖ±²¥ campus
Opening night of the McKale Center, Feb. 1, 1973.
University of ÃÛèÖÖ±²¥ campus
University of ÃÛèÖÖ±²¥ campus in 1923.
University of ÃÛèÖÖ±²¥ campus
University of ÃÛèÖÖ±²¥ campus in 1923
University of ÃÛèÖÖ±²¥ campus
A 1929 photo of the square outside the University of ÃÛèÖÖ±²¥ Main Gate looking towards downtown ÃÛèÖÖ±²¥. The photo was taken from the library's upper floor.
University of ÃÛèÖÖ±²¥ campus
Kevin Konz, 19, a UA student reads an astronomy book amid a row of palm trees on the UA campus across from the Park Student Union. Photo taken on 8/28/2000.
University of ÃÛèÖÖ±²¥ campus
An HDR composite of five images of the new Bryant Bannister Tree-Ring Building on the U of A campus, Thursday, February 28, 2013,
University of ÃÛèÖÖ±²¥ campus
he University Of ÃÛèÖÖ±²¥'s Main Library in 1995.
University of ÃÛèÖÖ±²¥ campus
University of ÃÛèÖÖ±²¥'s South Hall, lower left, is no longer standing.
University of ÃÛèÖÖ±²¥ campus
Students and alumni gather around the UA's annual homecoming bonfire in front of Old Main, Friday night, October 29, 2004.
University of ÃÛèÖÖ±²¥ campus
Swimmers swim among steam at the Hillenbrand Aquatic Center on the UA campus, Tuesday, Jan. 27, 2004, in the early morning that had a high of 35 degrees.
University of ÃÛèÖÖ±²¥ campus
Exterior of the The District on 5th, a private, off-campus student housing complex, foreground, at 5th Ave. and 5th Street in the West University area, with the buildings of the University of ÃÛèÖÖ±²¥ in the background.
University of ÃÛèÖÖ±²¥ campus
University of ÃÛèÖÖ±²¥ Mathematics Building located at UA campus on August 18, 2009.
University of ÃÛèÖÖ±²¥ campus
Arch in front of the Koffler building taken on the campus of the University of ÃÛèÖÖ±²¥ on October 9, 2008.
University of ÃÛèÖÖ±²¥ campus
Aerial view University of ÃÛèÖÖ±²¥, Bear Down building. February 14, 1929 at 11:05 am.
University of ÃÛèÖÖ±²¥ campus
Steward Observatory Mirror lab, under ÃÛèÖÖ±²¥ Stadium, while spin casting the second mirror for "the world's most powerful telescope," the Large Binocular Telescope," located on Mt. Graham, in 2000.
University of ÃÛèÖÖ±²¥ campus
The University of ÃÛèÖÖ±²¥ campus photographed from a helicopter on Friday June 20, 2003.
Contact Star reporter Shaq Davis at 573-4218 or sdavis@tucson.com
On Twitter: @ShaqDavis1
Shaq Davis
Reporter
Accreditor: UA Global Campus' academic improvement plan 'seriously inadequate'
