Bridgepoint Education, parent of Denver-based University of the Rockies, must discharge all outstanding private loans made to students and pay $8 million to the government, according to an announcement Monday from the Consumer Financial Protection Bureau.
The CFPB took action against Bridgepoint (NYSE: BPI) after it says the organization, based in San Diego, tricked students into taking out private loans that cost more than advertised.
Bridgepoint was ordered to forgive the loans of 1,277 current and former students who borrowed from its student loan programs between 2009 and 2015.
The refunds include $5 million to students who had already repaid some of their loans, and $18.5 million to discharge outstanding debt, for a total penalty of more than $23.5 million. Another $8 million civil penalty must be paid directly to the bureau.