Student Debt Relief: A New Chapter for 261,000 Borrowers
The Biden administration has taken a significant step towards alleviating the financial burden of student debt, announcing the forgiveness of $4.5 billion in loans for 261,000 borrowers who attended the now-defunct Ashford University. This move marks a major victory for students who were misled by the institution’s false promises and deceptive recruiting tactics.
A History of Deception
Ashford University, which operated primarily online, was accused of making false claims about costs and career outcomes to lure students into enrolling. The California Department of Justice, which led the investigation, uncovered evidence of the university’s wrongdoing, leading to the loan cancellation request.
Who Qualifies for Relief?
Borrowers who attended Ashford University between March 1, 2009, and April 30, 2020, are eligible for the debt forgiveness program. This move is expected to bring significant relief to those who were left with large debts and low incomes after attending the institution.
A Pattern of Deception
Ashford University’s practices were not an isolated incident. According to U.S. Under Secretary of Education James Kvaal, numerous federal and state investigations have documented the university’s deceptive tactics. The reality is stark: 90% of Ashford students never graduated, and those who did were often left with significant debt and limited career prospects.
A Commitment to Student Debt Relief
Since taking office, President Biden has forgiven debt for over 5 million federal student loan borrowers, totaling $183.6 billion in relief. This latest move is a testament to the administration’s commitment to addressing the student debt crisis and providing relief to those who need it most.
A New Beginning
For the 261,000 borrowers affected by Ashford University’s closure, this news brings a sense of hope and renewal. As the University of Arizona acquired Ashford University in 2020, and Zovio, Inc. approved a plan to go out of business in 2022, it’s clear that a new chapter is unfolding for these students. With this debt forgiveness program, they can finally start rebuilding their financial futures.
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