Biden Administration Forgives Another $72 Million In Loans For Students ‘Cheated’ By One School

This week, the Biden administration cancelled another $72 millions in student loans. They claimed that thousands of students had been “cheated” at a California school.

The Department of Education announced on Wednesday that the debts of approximately 2,300 students who attended Ashford University – an online, for-profit, school in San Diego, which has been acquired by University of Arizona – will be wiped out.

The Supreme Court struck down President Biden’s $430 billion plan to forgive 40 million student loans in June.

The administration announced that the total amount of student debt forgiven by the Biden Administration now stands at $116 billion, which is equivalent to more than 3.4 millions people.


The Department of Education reviewed a lawsuit filed by the California Department of Justice against Ashford University in 2017. This led to the $72 million loan forgiveness announced on Wednesday. California alleged that the school misled students about their tuition costs and employment prospects, while using aggressive recruitment methods.

Students from Ashford filed claims for borrower protection, alleging that their school had defrauded them. If approved, this type of claim could result in the forgiveness of student loans.

A judge at the time ruled that Ashford University had made 1.2 millions false representations to students between 2009-2020 and imposed a $22.3 million civil penalty. The school is appealing the ruling.

According to the court’s ruling, “the school created a high-pressured admissions department with enrollment numbers as its north star” and “admissions counsellors would cross an ethical “gray line” or “do things that they wouldn’t do normally to boost numbers in order to keep their job.”

James Kvaal, Under Secretary of Education at the Department of Education of California, said in a statement on Wednesday that Ashford used high-pressure tactics and deceptive recruitment techniques to attract students. We are now protecting students who have been cheated. We will also protect taxpayers and prevent future wrongdoing.

Rob Bonta, California’s Attorney General, said that what Ashford University had done to its students was illegal and unconscionable. “I would like to thank the Biden and Harris Administration for transforming the lives of thousands former Ashford Students today. “They have been living a nightmare too long.”

The president is looking for ways to help borrowers since the Supreme Court forced Biden to abandon his $430 billion plan to forgive student loans.

Biden stated that he “would stop at nothing” to find ways to provide relief to the hardworking middle class families.

In an email sent to holders of student loans, the administration said that the Supreme Court had “got it wrong” about student debt.

The administration announced several debt relief measures it said it would implement “immediately”, instead of Biden’s plan that was nixed.

Saving on a Valuable Education Plan (SAVE), which reduces monthly payments for millions of low income borrowers to zero dollars, is one of the measures.

A second step is to protect borrowers from the “worst” consequences of late or partial payment, such as the impact on their credit score once the pause in student loan payments ends this fall.