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