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
