Ashford’s web site posted a catalog supplement on 11/30/2012 which details several changes which could severely affect cash flow and earnings.
The $1,290 upfront “technology services fee” charged to all new students has been replaced with a $50 per course technology fee effective 1/1/2013. The loss of the service fee amounts to over $100 million per annum. This would be partially offset by the $50 per course fee which will only approximate $35-40 million per year in revenues.
Another example of how the business model continues to be adversely impacted by lower enrollment and higher costs.