The Biden administration is terminating student loans for 2,300 former Ashford University students to relieve students defrauded by for-profit educational institutions.
This decision was made in response to allegations that the university issued degrees without appropriate accreditation, calling into question the value of the education received, as per CNN.
Biden Administration Provides Student Loan Relief
Despite the US Supreme Court's rejection of President Joe Biden's earlier effort to rescind student loans on a large scale, his administration has pursued alternative means to offer loan forgiveness. The emphasis has shifted to programs that prioritize students who attended for-profit colleges and received deceptive information.
Ashford University was sued for deceiving its students about the cost of attendance and the time required to earn degrees. The court ruled that the university had misrepresented these crucial aspects, causing significant damage to the affected students.
Recently, the Biden administration announced canceling $72 million in student loans for Ashford University students. Those who had previously applied for borrower defense and were enrolled between March 1, 2009 and April 30, 2020 will receive this relief automatically.
As described on the Student Aid website, borrower defense to repayment is a legal basis for discharging federal Direct Loans if the school engaged in misconduct related to the loan or educational services, causing students injury. Students must have a verified account on the Federal Student Aid website to initiate the application process.
They will be required to provide information about the school they attended or are currently attending and documentation demonstrating their eligibility for borrower defense loan discharge and the injury they suffered. Rob Bonta, attorney general of California, responded to this announcement by emphasizing the illegal nature of Ashford University's actions.
He stated, "What Ashford University did to its students was morally reprehensible and unlawful. The California Department of Justice therefore sued Ashford and its parent company. In the end, we prevailed, obtaining over $22 million in penalties."
James Kvaal, undersecretary of education for the United States, highlighted Ashford's use of deceptive student recruitment tactics. As the California Department of Justice demonstrated in court, Ashford heavily relied on high-pressure and deceptive recruiting techniques to attract students.... Today, we are safeguarding the students who were defrauded by Ashford and holding the perpetrators accountable, protecting taxpayers, and discouraging future wrongdoing," according to Newsweek via MSN.
Student Loan Repayment Programs
As October approaches, the Biden administration and the Department of Education (DOE) are actively searching for methods to alleviate student debt burdens.
Former President Donald Trump initially paused federal student loan payments at the onset of the COVID-19 pandemic, and former President Joe Biden continued this suspension until just recently.
The administration of Vice President Joe Biden has advocated for student loan repayment programs that modify monthly payments based on family size and annual income.
These actions are a part of a larger initiative to improve the management and equity of the student loan system while addressing the problems that some educational institutions have caused, Yahoo News reported.
