Ashford University Students Seek Loan Forgiveness

The Biden administration has approved $72 million in student loan forgiveness for former students of Ashford University, a now-defunct for-profit college. This decision comes after a California court found that the university routinely misled students about its accreditation, costs, and time to graduation. The loan forgiveness will apply to over 260,000 former students, including those who did not apply for relief, and will provide a much-needed financial break for those burdened by student debt.

Biden administration cancels loans for 260,000 former Ashford University students

The Biden administration has announced the cancellation of student loans for 260,000 former students of the now-defunct for-profit Ashford University. This move is part of the administration's efforts to provide debt relief to borrowers who attended the university during a period of alleged misconduct and deceptive practices.

Ashford University, once one of the largest for-profit college companies in the nation, was found by a California court to have routinely misled prospective students about its accreditation, costs, and graduation times. In 2023, the Education Department began forgiving loans for an initial 2,300 Ashford students who applied for relief through the borrower defense program.

The new action expands forgiveness to all former students who attended during the period of misconduct, from March 2009 through April 2020, regardless of whether they applied for relief. This decision is expected to erase loan balances for borrowers, providing them with financial relief and a fresh start.

While the Biden administration has faced criticism from Republicans in Congress, who argue that the loan cancellation unfairly burdens taxpayers who did not attend college, the administration has prioritized assisting those affected by Ashford University's deceptive practices. This includes proposing the debarment of Zovio's founder, Andrew Clark, from acting as an executive for any institution receiving federal financial aid due to his role in the unlawful conduct.

The Biden administration's efforts to provide loan forgiveness for former Ashford University students demonstrate its commitment to addressing the issues arising from the for-profit education industry and ensuring that students are protected from misleading and deceptive practices.

California court finds Ashford University misled students

A California court ruled that Ashford University and its parent company, Zovio, misled students about costs, job prospects, the length of their degree programs, and the ability to transfer credits. The civil penalty imposed on the company was $22 million in fines, later reduced to $21 million. The court found that the university violated California's unfair competition law and false advertising law, committing 1,243,099 violations over a decade.

The ruling detailed how Zovio fostered an environment where admissions counsellors felt pressured to misrepresent Ashford's programs. Managers expected them to call hundreds of prospective students each day and threatened those who didn't meet enrollment targets with being fired. As a result, admissions counsellors routinely misled students about critical topics such as career outcomes, financial aid, and the pace of degree programs.

The Biden administration has since announced the cancellation of loans for 260,000 former students of the now-defunct for-profit Ashford University. This decision expands forgiveness to all former students who attended during the alleged misconduct, even if they didn't apply for relief. The total amount forgiven is $4.5 billion.

The University of Arizona bought Ashford University in 2020

The University of Arizona, a public land-grant research university in Tucson, Arizona, bought Ashford University in 2020 and renamed it the University of Arizona Global Campus. The deal was structured as a $1 purchase, but in reality, Ashford's parent company, Zovio, ended up paying millions to Arizona to make it happen. This was because Zovio would continue to run many services for Arizona's new Global Campus and was committed to a 15-year deal to share 19.5% of the revenue from the campus with the University of Arizona.

The University of Arizona's acquisition of Ashford University was heavily criticized, particularly by University of Arizona faculty members. They argued that the affiliation with Ashford would damage the University of Arizona's reputation as a flagship research university. There were also concerns about Ashford University's misleading marketing and recruitment tactics, which had been the subject of several lawsuits. Despite these concerns, the University of Arizona pushed ahead with the deal, feeling pressured to better compete in the online education market as other universities expanded their virtual options.

The University of Arizona Global Campus continued to face challenges after the acquisition. An audit conducted by consultancy EY revealed that the University of Arizona had spent a significant amount on marketing for the Global Campus, a tactic often associated with predatory institutions. Enrollment also continued to decline, dropping from about 107,000 students in fiscal year 2015 to 51,000 in fiscal year 2023. In addition, the University of Arizona faced a financial crisis in 2023, which was linked to the university's purchase of Ashford University.

In 2025, the Biden administration announced that it would cancel loans for over 260,000 former students of Ashford University. This decision was made after a California court found that Ashford University had routinely misled prospective students about its accreditation, costs, and the time it would take to graduate. The loan forgiveness was part of the borrower defense program, which aims to provide relief to students who were deceived by their colleges.

Republicans in Congress clash with Biden administration over student loan cancellation

The Biden administration has cancelled loans for 260,000 former students of the now-defunct for-profit Ashford University, as part of its debt forgiveness agenda. This move has been criticised by Republicans in Congress, who argue that it is a presidential overstep that burdens taxpayers who did not attend college.

The clash between Republicans in Congress and the Biden administration over student loan cancellation is part of a broader ideological conflict. Republicans have consistently opposed Biden's plans for widespread student loan forgiveness, with some calling it "vile" and illegal. They argue that the cost of loan cancellation is ultimately borne by taxpayers, including those who did not attend college or have already repaid their loans.

In 2023, the Biden administration announced that $72 million in student loans for around 2,300 borrowers who enrolled at Ashford University would be forgiven. This was based on a California court's finding that the college routinely misled prospective students about its accreditation, costs, and the time it would take to graduate. The Education Department started forgiving loans for these students under the borrower defence program, which allows for loan cancellation if students are cheated or misled by their colleges.

Republicans have criticised this practice of automatically cancelling loans for large groups of borrowers, even if they did not individually apply for relief. They have also taken issue with the Biden administration's use of executive power to expand eligibility for loan forgiveness without going through Congress. In response, Republicans in the House have passed resolutions aimed at overturning Biden's student loan cancellation plans, but these have been vetoed by the White House.

Despite the opposition from Republicans, the Biden administration has provided loan relief to more than 5 million borrowers through existing programs, more than any other president. However, Biden's broader plan to forgive up to $20,000 in student loans for tens of millions of borrowers has been blocked by the Supreme Court and legal challenges from Republican states.

Biden fails to deliver on widespread student loan forgiveness

Despite overseeing the cancellation of student loans for more than 5 million Americans, President Joe Biden failed to deliver on his promise for widespread student loan forgiveness. The Biden administration's plan to erase up to $20,000 in federal student debt for over 40 million Americans was blocked by the Supreme Court. A second attempt was also challenged in federal courts by several Republican states.

Biden's pursuit of broad student loan forgiveness, rather than targeted loan forgiveness based on the borrower's inability to pay, created false expectations among borrowers. This failure had dire financial consequences for those who expected loan cancellation and were not prepared to resume payments. The Biden administration's changes were largely made through executive action, making them easier to reverse under the new Trump administration.

The cancellation of student loans for 5 million Americans was achieved through existing programs, such as the Public Service Loan Forgiveness Program, and by expanding eligibility rules during the pandemic. The Biden administration also used the borrower defense program, which allows students to get their loans canceled if they were cheated or misled by their colleges. This was particularly relevant in the case of Ashford University, where more than 260,000 former students had their loans erased due to the college's misleading practices.

While Biden canceled more education debt than any other US president, he did not fulfill his campaign promise of sweeping loan forgiveness. This has led to mixed opinions on the success of his administration's efforts, with some praising the impact on borrowers and others criticizing the lack of a straightforward path to student loan forgiveness during his term.

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