The Biden administration’s latest student loan forgiveness aids 261,000 borrowers misled by Ashford University, providing much-needed relief.
California: The Biden administration just wrapped up a $4.5 billion student loan forgiveness plan. This is a big deal for 261,000 borrowers who attended Ashford University from 2009 to 2020. It’s the last major round of relief under President Biden, aimed at those who were misled by this now-closed for-profit school.
So, what happened? Investigations showed that Ashford was not honest about its programs. They misrepresented costs, transfer credits, and job prospects. James Kvaal, the Under Secretary of Education, pointed out that a staggering 90% of Ashford students never graduated. Those who did often ended up with a mountain of debt and low-paying jobs. This announcement is a long-awaited relief for many who suffered because of Ashford’s shady practices.
The best part? Affected borrowers don’t need to do anything. They’ll get emails letting them know their remaining loan balances are being wiped out. No more payments! This relief even covers those who didn’t formally apply for help through the Borrower Defense program.
California played a huge role in bringing Ashford’s fraud to light. Attorney General Rob Bonta highlighted how the school made false promises. He said Ashford sold dreams but left students with debt and no degrees. California’s legal actions against Ashford’s parent company, Zovio, led to a $20 million penalty and set the stage for this federal relief.
On top of that, the Department of Education is looking to ban Andrew Clark, Ashford’s founder, from federally funded programs. He’s accused of prioritizing enrollment over ethics. The evidence against him is pretty strong, with internal memos and employee testimonies showing aggressive and misleading recruitment tactics.
This forgiveness is part of a bigger effort by the Biden administration, which has already approved $34 billion in debt relief for over 1.9 million borrowers who were misled by predatory schools. While there have been legal bumps in the road for broader student debt cancellation, targeted efforts like this are still making a real difference.
For former Ashford students, this is a step toward regaining financial stability after years of being misled. Secretary of Education Miguel Cardona summed it up well: this relief helps restore hope and opportunity for those who were wronged.
