The Biden administration recently approved its last major batch of student loan relief, greenlighting $4.5 billion in forgiveness for 261,000 borrowers.
The recipients of the debt cancellation attended Ashford University, a former for-profit school that the U.S. Department of Education determined made “substantial misrepresentations” about its program quality and costs to federal student loan borrowers. The school was later acquired by the University of Arizona, which enlisted Ashford’s parent company, Zovio, to run its University of Arizona Global Campus.
The federal agency greenlit the relief through legal grounds called borrower defense to repayment, a program that allows the federal government to grant discharges for defrauded students. Borrowers approved through the program usually have taken out loans to attend schools subsequently found to have engaged in misconduct, such as exaggerating how much money students can expect to make after graduation.
Read more at USA Today.
