U.S. Department of Education Discharges Student Loans for Victims of Alleged Ashford University Deceit

  • The U.S. Department of Education (DOE) approved $72 million in borrower defense to repayment discharges for students of online for-profit school Ashford University, which allegedly made substantial misrepresentations to students.
  • The approval was based on a review of evidence presented by California AG Rob Bonta in a successful lawsuit that we previously reported, in which the court found that Ashford made misleading representations to prospective students regarding career prospects, among other things.
  • According to the DOE, borrowers will not have to make payments on the loans being discharged, and payments made to the DOE on federal student loans will be refunded. The DOE also intends to initiate a recoupment proceeding to seek repayment of the liabilities associated with approved claims.