The Biden-Harris Administration has announced a significant financial relief measure for 261,000 borrowers who attended Ashford University. This decision involves a $4.5 billion group discharge in response to evidence from the California Department of Justice's lawsuit against Ashford University LLC and its parent company, Zovio, Inc. The lawsuit highlighted widespread misrepresentations regarding students' ability to obtain necessary licensure, transfer credits, costs, financial aid, and the time required to earn a degree.
U.S. Under Secretary of Education James Kvaal stated that "numerous federal and state investigations have documented the deceptive recruiting tactics frequently used by Ashford University." He noted that "90 percent of Ashford students never graduated," leaving many with substantial debts and low incomes.
California Attorney General Rob Bonta emphasized that "Ashford University made false promises to students about the value of an Ashford degree." He expressed pride in California's efforts in holding Ashford accountable for its deception.
In addition to this group discharge, the U.S. Department of Education proposed debarment action against Andrew Clark, Zovio's founder and CEO. The department claims Clark was aware of or participated in Ashford’s misrepresentations.
The department is taking steps to ensure accountability and protect future students from similar issues. This includes proposing a government-wide debarment for Andrew Clark due to his involvement in misleading practices at Ashford University.
This announcement is part of broader efforts by the Biden-Harris Administration to provide relief for student loan borrowers affected by school closures or misconduct. To date, more than 1.9 million borrowers have received $34 billion in relief under these initiatives.
