WASHINGTON – The Biden administration has given the green light to forgive $4.5 billion in student loans for 261,000 borrowers who attended Ashford University. The U.S. Department of Education found that Ashford had made misleading claims about its programs and costs to students with federal loans. The relief was provided through the borrower defense to repayment program, which helps students who were defrauded by their schools. Education Under Secretary James Kvaal stated that many Ashford students never graduated, leaving them with significant debt and low earning potential.
This latest round of debt forgiveness comes after the administration announced forgiving nearly $200 billion in student loans for over five million borrowers during President Biden’s term. The Education Department also proposed banning Andrew Clark, the founder of Zovio, from leading institutions that receive federal aid. Concerns have been raised about the future of borrower defense under the incoming administration. The Supreme Court will review an appeal by the Biden administration to ease the approval process for borrower defense discharges.
Despite uncertainties about future regulations, outgoing Education Secretary Miguel Cardona expressed hope for American students. Many of the Biden administration’s college affordability policies have faced legal challenges, but Cardona remains optimistic.
This article was first published by USA TODAY: Biden gives final approval for significant student loan forgiveness.
