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
