The UA Ashford University deal may have arisen because of a 2017 suit by California against Ashford for: (1) allegedly false financial aid promises to students and (2) allegedly using “illegal debt collection practices” against students.
The Ashford takeover, to be run not as a UA subsidiary but by the new University of Arizona Global Campus led by its own board and president, seems like a structure designed to shelter UA from potential liability from the California litigation.
The UA is stepping into an entirely different field of business with acquisition of a troubled for-profit on-line Ashford. Whether UA will be able to successfully compete in this different industry consisting of enormous on-line for-profit conglomerates and to withstand that kind of competitive heat and prosper will be determined over time. This may prove to be a river boat gamble. The devil will be in the details.
Mort Ganeles
Foothills
Disclaimer: As submitted to the Arizona Daily Star.
