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By Matthew Impelli
Life & Trends Reporter
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President Joe Biden's administration is canceling student loans for 2,300 people who attended Ashford University, which was accused of issuing worthless degrees because it wasn't properly accredited.
Biden's attempt to broadly cancel student loans was shot down by the U.S. Supreme Court, but he's pursued forgiveness through more specific programs. The administration has prioritized relief for students who attended for-profit schools found to have misrepresented themselves. A court found that Ashford University lied about the cost to attend and misled students about the length of time it would take to complete their degree.
On Wednesday, the Biden administration announced that $72 million worth of loans were being discharged for students who attended the school. Relief will be automatic for students who attended from March 1, 2009, to April 30, 2020, and previously applied for borrower defense.
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Those who believe they were misled by Ashford and aren't eligible for the relief announced Wednesday can still apply through the Student Aid website for borrower defense loan discharge.
According to the student aid website, "borrower defense to repayment is a legal ground for discharging federal Direct Loans. Under the law, you may have a borrower defense to repayment if your school engaged in certain misconduct related to the making of a federal loan or the educational services it provided which caused you harm warranting a full discharge of your applicable federal Direct Loans."
In order to apply, students will need to have a verified account through the Federal Student Aid website, the name of the school they attended or are still attending and "Documentation to support why you believe you qualify for borrower defense and to demonstrate the harm you suffered."
In a release announcing the loan forgiveness, California Attorney General Rob Bonta said: "What Ashford University did to its students was unconscionable and illegal. That's why the California Department of Justice took Ashford and its parent company to court. Ultimately, we prevailed, securing more than $22 million in penalties."
Read more: Student Loan Forgiveness Updates and FAQs: Who Qualifies and How To Apply
When reached for comment, the Department of Education (DOE) directed Newsweek to remarks from U.S. Under Secretary of Education James Kvaal, who said: "As the California Department of Justice proved in court, Ashford relied extensively on high-pressure and deceptive recruiting tactics to lure students....Today we are protecting the students who were cheated by Ashford, and we will also hold the perpetrators accountable, protect taxpayers, and deter future wrongdoing."
Prior to the announcement, the Biden administration and the DOE have continued to seek new ways to alleviate student loan debt ahead of the resumption of payments in October. At the start of the COVID-19 pandemic, then-President Donald Trump issued a pause on federal student loan payments that was continued by Biden until recently.
Biden has promoted the use of income-driven repayment programs, which lower monthly student debt payments based on family size and annual income.
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