Who qualifies for Biden’s latest round of $4.5 billion in student loan forgiveness?

The Biden administration has announced a $4.5 billion student loan forgiveness scheme for 261,000 individuals who attended Ashford University between 2009 and 2020. This is the final significant round of student debt relief under President Biden, aimed at individuals deceived by the now-defunct for-profit company.

The judgment came after investigations indicated that Ashford misrepresented key features of its programs, including fees, transfer credits, and employment prospects. “Ninety percent of Ashford students never graduated,” stated James Kvaal, Undersecretary of Education. “And those that did were frequently left with large debts and meager salaries. Today’s announcement will finally relieve many people injured by Ashford’s unlawful activities.

Borrowers affected by this decision will not have to take any action. They will get emails informing them that their outstanding loan sums will be forgiven, with no additional payments necessary. This discharge applies even to borrowers who did not formally petition for relief through the Borrower Defense program, the legal framework for forgiving loans related to institutional malfeasance.

California played an important part in uncovering Ashford’s fraudulent activities. Attorney General Rob Bonta highlighted the school’s deceptive claims. “Ashford sold dreams of brighter futures but left students in worse situations, such as debt, no degrees, and broken promises,” according to Bonta. California’s legal lawsuit against Ashford’s parent firm, Zovio, resulted in a $20 million fine and paved the way for this federal redress.

This aids 261,000 debtors who Ashford University cheated:

Additionally, the Department of Education has suggested prohibiting Ashford’s founder and former CEO, Andrew Clark, from engaging in federally supported educational programs. Clark is accused of creating a culture that prioritizes enrollment numbers over ethics. “The evidence is overwhelming,” the Department concluded, citing internal documents and employee affidavits revealing aggressive, deceptive recruitment techniques. This forgiveness endeavor is part of a wider operation launched by the Biden administration, which has granted $34 billion in debt relief for over 1.9 million debtors deceived by unscrupulous colleges.