Northern, WI 7/9/12 (StreetBeat) -- For-profit education provider Bridgepoint Education Inc (NYSE:BPI) said its Ashford University has been denied initial accreditation by the Western Association of Schools and Colleges because it failed to comply with the WASC's standards.
Bridgepoint shares fell as much as 34 percent to a 20-month low of $14.24 and the stock was the top loser on the New York Stock Exchange.
The company, which wants to switch its accrediting body from Higher Learning Commission (HLC) to WASC, said it intends to appeal the decision and also reapply for initial accreditation. However, Bridgepoint said the WASC could act on the reapplication only in June next year.
The San Diego-based company said the HLC requires Ashford University to demonstrate substantial presence in the 19-state north central region by December 1 this year.
Failing to do so could result in reconsideration of accreditation by the HLC, the company said.
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