The U.S. Department of Education has announced the forgiveness of $4.5 billion in student loans for more than 200,000 borrowers, specifically targeting those who attended Ashford University. This move is part of the Biden administration’s broader effort to alleviate the burden of student debt for Americans.
The relief applies to students who were enrolled at Ashford University, now known as the University of Arizona Global Campus, from March 2009 to April 2020. The Education Department determined that Ashford had engaged in “widespread misrepresentations,” misleading students about the length of degree programs, financial aid costs, and the ease of obtaining necessary professional licenses.
This latest round of loan forgiveness underscores the administration’s commitment to addressing the student debt crisis, particularly for those who have been victims of fraudulent educational institutions. Since taking office, the Biden administration has forgiven over $183 billion in student loans for more than 5 million borrowers, navigating around legal challenges that have blocked broader student debt relief plans.
The decision to forgive these loans was shared in a press release by the Department of Education, which emphasized that this relief is directed towards borrowers defrauded by their schools. The announcement follows shortly after another initiative where federal workers, individuals with permanent disabilities, and others who were misled by their universities received loan forgiveness.
However, this move has not been without its critics. Some argue that such targeted debt relief could set a precedent for more widespread cancellations, potentially straining federal finances further. Others see it as a necessary step to correct past wrongs by for-profit institutions that have often left students with unmanageable debt and without the promised career outcomes.
The action by the Education Department also comes as the department has been working on various fronts to reform the student loan system, including the introduction of the Saving on a Valuable Education (SAVE) plan, aimed at making repayments more manageable for borrowers.
As the administration continues to refine its approach to student loan forgiveness, this specific relief for Ashford University students highlights the ongoing struggle to balance educational accountability with economic relief for borrowers, sparking discussions on the future of higher education funding and regulation in the U.S.
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The Department of Education (DOE) on Wednesday announced the forgiveness of another $4.5 billion in student loans for over 200,000 borrowers at Ashford University, in one of the department’s final moves of the Biden administration.
President Joe Biden and his administration have attempted to clear out a massive amount of student loan debt for Americans who are still paying off their loans after 20 years, though some efforts have been curbed by the courts. However, they have successfully forgiven loans for over 5 million borrowers over the past four years.
The department said in a press release that the latest round of cancellations goes to over 261,000 students, who were enrolled in the largely online school of Ashford University from March 2009 to April 2020.
The department determined that the school made “widespread misrepresentations” about its programs, including how long it would take to complete a degree, costs of financial aid, and the ability to obtain necessary licenses.
“Numerous federal and state investigations have documented the deceptive recruiting tactics frequently used by Ashford University,” U.S. Under Secretary of Education James Kvaal said in a statement. “In reality, 90 percent of Ashford students never graduated, and the few who did were often left with large debts and low incomes.”
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