Aug 30, 2023 - Politics & Policy

Biden admin wipes millions in student debt for more “cheated” borrowers

Shauneen Miranda

Demonstrators stand outside the U.S. Supreme Court in June. Photo: Tom Brenner for The Washington Post via Getty Images

The Biden administration added another lump sum to its student loan debt forgiveness offerings: $72 million in relief to over 2,300 borrowers who attended the school formerly known as Ashford University.

Why it matters: The decision follows President Biden's promise to continue pursuing student debt relief following the Supreme Court's decision earlier this summer to strike down his administration's loan forgiveness plan.

Ashford University was an online, for-profit school based in San Diego that the University of Arizona has since acquired and renamed as the "University of Arizona Global Campus."

The big picture: The Biden administration said it has so far approved over $116 billion in student loan forgiveness for over 3.4 million borrowers.

Driving the news: The Department of Education on Wednesday announced the new forgiveness recipients, saying Ashford made misrepresentations to students between 2009 and 2020.

Ashford University students had filed for loan forgiveness under the department's borrower defense process, describing an inability to complete programs and obtain employment.
A court previously sided with California's Department of Justice in March 2022 in a lawsuit against Ashford and Zovio, Inc., its parent company.

Eligible borrowers will be emailed in September, the DOE said.

What they're saying: U.S. Under Secretary of Education James Kvaal said in a statement that Ashford "relied extensively on high-pressure and deceptive recruiting tactics to lure students," citing the California DOJ's court victory.

He added that the department was "protecting the students who were cheated by Ashford."
Axios reached out to the UAGC for comment.

Go deeper: How to apply for the new student loan repayment plan

Add Axios on Google

Biden admin wipes millions in student debt for more “cheated” borrowers

What to read next