UNITED STATES NEWS

Biden administration cancels loans for former Ashford U. students, with plans to recoup costs

Aug 30, 2023, 12:54 PM

President Joe Biden, center, delivers remarks on recovery efforts for the Maui wildfires and the re...

President Joe Biden, center, delivers remarks on recovery efforts for the Maui wildfires and the response to Hurricane Idalia, in the Roosevelt Room of the White House, Wednesday, Aug. 30, 2023, in Washington. (AP Photo/Evan Vucci)
Credit: ASSOCIATED PRESS

(AP Photo/Evan Vucci)

WASHINGTON (AP) — The Biden administration is canceling $72 million in student loans for 2,300 borrowers who say they were cheated by Ashford University, a former for-profit college that was purchased by the University of Arizona in 2020.

The Education Department announced the action Wednesday, saying it will seek to recoup the money from the University of Arizona. The university did not immediately provide a comment.

Before its sale, Ashford was an online for-profit college that enrolled more than 100,000 students. It was owned by the company Zovio and based in San Diego.

A California court in 2022 found that Ashford frequently lied to students to get them to enroll. Its recruiters misled students about the college’s accreditation, costs and the amount of time it would take to graduate, the court concluded.

That lawsuit, brough by the state of California, was the basis of the Education Department’s cancellation.

President Joe Biden said his administration “won’t stand for colleges taking advantage of hardworking students and borrowers.”

“These borrowers were lied to about the cost of attending Ashford, were misled about how long it would take to get a degree, and were deceived about the transferability of Ashford credits,” Biden said in a statement. “They deserve better.”

The action will automatically discharge loans for 2,300 borrowers who attended Ashford from March 2009 through April 2020 and applied for cancellation through the Education Department’s borrower defense program. Those borrowers will see their loan balances zeroed out, and they will be refunded for payments on their federal loans.

California Attorney General Rob Bonta encouraged other former Ashford students to apply for relief if they were deceived.

“What Ashford University did to its students was unconscionable and illegal,” Bonta said. “That’s why the California Department of Justice took Ashford and its parent company to court.”

Under its previous ownership, Ashford’s recruiters told students they would be able to work as teachers, social workers, nurses and drug and alcohol counselors, but the school never got accreditation for those professions, according to California’s lawsuit.

Recruiters also told potential students they would never face out-of-pocket costs, which wasn’t always true, and they boasted about “accelerated” programs, even though the bachelor’s degree programs were structured to take five years to finish, the suit said.

Only 25% of Ashford students graduated within eight years of enrolling.

The court ruled in favor of California in 2022 after an 18-day trial and imposed a civil penalty of $22.3 million against Ashford. The penalty is being appealed.

The University of Arizona purchased Ashford University in 2020 and turned it into an online branch of the school, changing its name to the University of Arizona Global Campus.

It’s one of several for-profit colleges that have been purchased and absorbed by nonprofit universities, including Purdue University’s purchase of Kaplan University, and the University of Idaho’s purchase of the University of Phoenix.

The Biden administration is separately taking steps to propose widespread student debt cancellation after the Supreme Court rejected the president’s previous proposal in June. The Education Department is gathering negotiators for a rulemaking process that will get underway in October.

The department said it plans to issue a final rule on cancellation sometime next year.

___

The Associated Press education team receives support from the Carnegie Corporation of New York. The AP is solely responsible for all content.

United States News

Associated Press

Norman Lear, producer of TV’s ‘All in the Family’ and influential liberal advocate, has died at 101

LOS ANGELES (AP) — Norman Lear, the writer, director and producer who revolutionized prime time television with “All in the Family,” “The Jeffersons” and “Maude,” propelling political and social turmoil into the once-insulated world of TV sitcoms, has died. He was 101. Lear died Tuesday night in his sleep, surrounded by family at his home […]

56 minutes ago

Associated Press

White House delays menthol cigarette ban, alarming anti-smoking advocates

WASHINGTON (AP) — White House officials will take more time to review a sweeping plan from U.S. health regulators to ban menthol cigarettes, an unexpected delay that anti-tobacco groups fear could scuttle the long-awaited rule. Administration officials indicated Wednesday the process will continue into next year, targeting March to implement the rule, according to an […]

1 hour ago

Associated Press

New GOP-favored Georgia congressional map nears passage as the end looms for redistricting session

ATLANTA (AP) — A Georgia special session to redraw congressional and legislative voting district maps is likely to end Thursday after a House committee on Wednesday advanced a Republican-favored congressional map that targets Democratic U.S. Rep. Lucy McBath’s current district. However, the wrangling is unlikely to end there, with those who brought the challenges that […]

2 hours ago

President Joe Biden delivers remarks at the White House Tribal Nations Summit at the Department of ...

Associated Press

Biden’s campaign will not commit yet to participating in general election debates in 2024

TUSCALOOSA, Ala. (AP) — President Joe Biden’s campaign is not yet committing to general election debates next year, the latest sign that a staple of modern White House campaigns may not be in play in 2024. Quentin Fulks, Biden’s top deputy campaign manager, told reporters Wednesday that the president’s reelection campaign would “look at the […]

2 hours ago

Associated Press

Nevada grand jury indicts 6 fake Donald Trump electors

RENO, Nev. (AP) — A Nevada grand jury indicted six Republicans who submitted certificates to Congress falsely declaring Donald Trump the winner of the 2020 presidential election in their state, making Nevada the third to seek charges against so-called “fake electors.” Nevada Attorney General Aaron Ford began investigating the fake electors last month. He said […]

2 hours ago

Associated Press

Juanita Castro, anti-communist sister of Cuban leaders Fidel and Raul, dies in Miami at 90

MIAMI (AP) — Juanita Castro, the sister of Cuban rulers Fidel and Raúl Castro who worked with the CIA against their communist government, has died in Miami at 90. Florida had been her home since shortly after fleeing the island nearly 60 years ago. Journalist María Antonieta Collins, who co-wrote Juanita Castro’s 2009 book, “Fidel […]

2 hours ago

Sponsored Articles

Follow @KTAR923...

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

Follow @KTAR923...

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.

Follow @KTAR923...

West Hunsaker at Morris Hall supports Make-A-Wish Foundation in Arizona

KTAR's Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

Biden administration cancels loans for former Ashford U. students, with plans to recoup costs