In a significant move to address student debt, the Biden Administration announced on January 13, 2025, that it will forgive loans for approximately 150,000 borrowers who attended the now-defunct Ashford University. This decision comes as part of ongoing efforts to combat student loan debt and provide relief to borrowers who were misled by fraudulent educational practices. Education Secretary Miguel Cardona stated, “This relief will help borrowers who were exploited by a predatory school that left them with debt and no degree.” The forgiveness is expected to clear borrowers’ federal student loans totaling $1.4 billion. Ashford University, established in 1918 and located in San Diego, ceased operations in 2020 amid various accusations of misconduct. The U.S. Department of Education’s investigation revealed that the university had engaged in deceptive practices, including misleading advertising about job placement rates. Former student Maria Gonzales, who struggled for years to make payments on her loans, expressed her relief, saying, “It’s like a weight has been lifted off my shoulders. I can finally move forward without this burden. Thank you to all who fought for us.” The announcement has garnered praise from various advocacy groups who have long campaigned for better protections for student borrowers. The administration aims to continue its policy of providing robust support for those affected by the educational system’s shortcomings, emphasizing the need for accountability in higher education. The president’s efforts align with broader goals to reform student loan policies and alleviate the financial strain on millions of Americans carrying student debt.
Biden Administration Forgives Student Loans for Ashford University Borrowers
