University of Arizona Exonerated from $72M in Discharged Ashford Loans The U.S. Department of Education has decided not to pursue financial recoupment from the University of Arizona for $72 million in federal loans discharged in 2023 related to former students of Ashford University. The decision, made under the Trump administration, clears the public flagship university of liability for the discharged loans, which were tied to borrower defense claims against Ashford for misleading students about costs and career outcomes. The University of Arizona acquired Ashford in 2020 and rebranded it as the University of Arizona Global Campus (UAGC). The resolution came after the Education Department reviewed Ashford’s recruitment practices, which were scrutinized following a 2023 lawsuit against Zovio, Ashford’s former parent company. The state of California had sued Zovio for misleading students, resulting in a $22.4 million civil penalty. The department had previously accused Ashford of “deceptive recruiting tactics” and an alarmingly low graduation rate, leading to the discharge of $4.5 billion in loans across 261,000 borrowers by 2025. In late March 2026, University of Arizona President Suresh Garimella announced that the Education Department had resolved all legacy financial matters stemming from Ashford’s conduct prior to the university’s acquisition. A letter obtained by the Arizona Daily Star detailed the department’s rationale, with an Education Department official stating that it was “not appropriate to bring a recoupment action against Ashford University” and thus the University of Arizona Global Campus. The decision marked a shift from earlier Biden administration considerations, which had suggested the possibility of holding the University of Arizona financially responsible for some of the discharged loans.#university_of_arizona #ashford_university #uagc #zovio #frank_dooley
Education Department Abandons $72M Recoupment Demand Against University of Arizona The U.S. Department of Education has abandoned its plan to seek repayment of $72 million from the University of Arizona for loan debt canceled under a borrower-defense program. The decision, outlined in a December letter from an Education Department official to University of Arizona President Suresh Garimella, clarifies that the department will not pursue recoupment for loans discharged in August 2023. These loans were granted to 2,300 students who claimed they were misled by Ashford University, a for-profit online institution that the University of Arizona acquired in 2020 and rebranded as the University of Arizona Global Campus. The Education Department initially sought to recoup the funds in August 2023 after determining that Ashford students had been defrauded. The department’s Office of Federal Student Aid, however, concluded that it was not appropriate to pursue legal action against Ashford or its successor institution. Rhonda Shaffer, an official in the department, wrote in the letter that the decision reflects the agency’s discretion in handling borrower-defense claims. The University of Arizona had previously argued that it should not be held responsible for Ashford’s actions prior to its acquisition. The decision provides clarity for the University of Arizona Global Campus, which has operated under the university’s ownership since 2020. Arizona spokesperson Mitch Zak stated that the ruling affirms the standards under which the institution has operated. The university also announced in March that it plans to integrate the Global Campus with Arizona Online, rather than maintaining it as a separate entity.#university_of_arizona #u_s_department_of_education #suresh_garimella #ashford_university #university_of_arizona_global_campus
