Biden Administration Cancels Student Debt for 261,000 Ashford University Borrowers

SAN DIEGO — The Biden-Harris Administration announced Wednesday that student loans will be discharged for over 260,000 former students of San Diego-based online school Ashford University and its parent company, Zovio Inc., following court rulings that the school misled prospective students.

The decision comes nearly three years after a San Diego judge ordered more than $22 million in penalties against Ashford and Zovio for providing “false or misleading information about career outcomes, cost and financial aid, pace of degree programs, and transfer credits” to entice enrollment. A three-justice panel of the 4th District Court of Appeal later reduced the penalty by $1 million but upheld the ruling.

“Numerous federal and state investigations have documented the deceptive recruiting tactics frequently used by Ashford University,” said U.S. Under Secretary of Education James Kvaal. “In reality, 90 percent of Ashford students never graduated, and the few who did were often left with large debts and low incomes.”

The debt discharge applies to 261,000 borrowers who attended Ashford between March 2009 and April 30, 2020. Borrowers will receive emails from the Department of Education in the coming days notifying them of the full amount of loans to be discharged. No further action is required, and borrowers will receive relief even if they did not submit a borrower defense to repayment application.

California Attorney General Rob Bonta praised the decision, stating, “I commend the Biden Administration and the Department of Education for making sure that students who were scammed into trusting in Ashford have the opportunity for a brighter future they always deserved.”

In a related development, the Department of Education proposed debarring Zovio’s CEO, founder, and president, Andrew Clark, from participating in federal student aid programs. The department accused Clark of personally participating in and supervising the school’s unlawful recruiting practices. The matter will be referred to the Department of Education’s Office of Hearings and Appeals for a final decision.

Ashford University, now owned by the University of Arizona and operating as the University of Arizona Global Campus, has faced multiple legal challenges over its recruitment practices and student outcomes.