The Department of Education has forgiven $72 million in student loans through borrower defense to repayment (BDR) discharges for over 2,300 students who attended Ashford University, now the University of Arizona Global Campus.  Defrauded students will be notified later this month that their BDR application has been approved and their student loan payments will be refunded without further action from them.

This move comes after the Department concluded its internal investigation and review of the evidence brought forth in the lawsuit the California Department of Justice brought against Ashford and its parent company, Zovio, Inc. earlier this week. The California court ruled that between March 1, 2009 and April 30, 2020, Ashford made 1.2 million individual misleading representations of their offerings, financial aid, and career outcomes that directly harmed students.  As a result, Ashford was fined $22.3 million. 

In addition, the Department has signaled that it will initiate recoupment proceedings at a later date to have the current owner, the University of Arizona, and Zovio, Inc., repay the liabilities associated with the BDR claims. However, pending a decision in another court case, this one involving DeVry University, it is currently unclear whether the Department has the authority to pursue recoupment in this manner.