The Biden administration announced it had wiped $72 million of student loan debt from 2,300 student borrowers.
The Department of Education released a statement on Wednesday saying students who attended Ashford University, a San Diego, California-based online school that has since been acquired by the University of Arizona, would receive student loan relief due to educational misrepresentations made to students between 2009 and 2020.
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The announcement comes after the Supreme Court struck down the Biden administration’s student loan forgiveness plan. Despite the Supreme Court decision, President Joe Biden has promised to provide other ways to offer relief to student loan borrowers.
United States Undersecretary of Education James Kvaal cited a California court’s decision last year that sided with students’ claims of being misled about school programs and employment possibilities.
“As the California Department of Justice proved in court, Ashford relied extensively on high-pressure and deceptive recruiting tactics to lure students,” Kvaal said. “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.”
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With Wednesday’s relief approval, the Biden administration touted that more than 3.4 million people have received loan relief, resulting in more than $116 billion in loan discharges.
Of those borrowers to receive relief, the Department of Education said it has now approved $14.8 billion in relief for 1.1 million borrowers whose schools “took advantage of them or closed abruptly.”
