Biden administration erases loans for 260,000 former Ashford University students due to university misconduct – Times of India

The Biden administration has announced a sweeping loan forgiveness measure that will benefit more than 260,000 former students of Ashford University, a now-defunct for-profit institution. The move marks a significant step in the administration’s ongoing efforts to address student loan debt, particularly for those who were misled by predatory educational practices.
Ashford University, which once served over 100,000 students, was accused of deceptive practices regarding its accreditation, cost structures, and graduation timelines.

The university was owned by Zovio until it was sold to the University of Arizona in 2020. The Education Department’s action follows a California court ruling that found Ashford routinely misled students, resulting in significant financial burdens for many.
Forgiveness expands to all affected students
Initially, the Education Department had forgiven loans for a small group of 2,300 former Ashford students who had applied for relief through the borrower defense program in 2023. However, this new action broadens the relief to cover all former students who attended Ashford from March 2009 through April 2020, regardless of whether they applied for loan forgiveness.
The forgiveness applies to students who were misled about the quality of the education they received and the financial burdens they would face. As reported by the Associated Press, Education Secretary Miguel Cardona said, “We are providing relief to students who were harmed by Ashford University’s deceptive practices, ensuring that they are no longer burdened by unfair student loan debt.”
Zovio founder faces repercussions
In an unprecedented move, the Education Department is also taking steps to hold Zovio’s founder, Andrew Clark, accountable for his role in the misconduct. The department is proposing to debar Clark from holding any executive position at an institution receiving federal financial aid for at least three years. This action seeks to prevent further harm to students from similar predatory practices in the future.
The loan forgiveness action reflects the administration’s ongoing commitment to addressing injustices in the for-profit education sector. However, as quoted by the Associated Press, Republican lawmakers, including Rep. Virginia Foxx, have criticized the move, calling it an overreach that places undue burden on taxpayers who did not attend college.