The Biden administration forgives $4.5 billion in student debt for Ashford University borrowers
On Wednesday, the Biden administration announced the forgiveness of $4.5 billion in student debt for 261,000 borrowers who attended the now-defunct Ashford University.
The relief applies to borrowers who studied at the mostly online institution between March 1, 2009, and April 30, 2020.
The California Department of Justice requested the loan cancellation for federal student loan borrowers following evidence gathered during a lawsuit against Ashford University and its parent company, Zovio, Inc., according to the Education Department.
Key Points:
- University of Arizona acquired Ashford University in 2020
- Zovio approved a plan to go out of business by late 2022
- California’s Justice Department accused the university of deceptive practices
- Biden has forgiven over $183.6 billion in student debt for more than 5 million borrowers since taking office
U.S. Under Secretary of Education James Kvaal stated that Ashford University used deceptive recruiting tactics, with only 10% of students graduating and many left with significant debts and low incomes.
The announcement comes as part of President Biden’s efforts to provide relief to federal student loan borrowers, totaling over $183.6 billion since taking office.