The Department of Education is discharging $72 million in student loans for over 2,300 former students who attended Ashford University after the department found the online for-profit school made "substantial misrepresentations" that harmed borrowers.

The action applies to borrowers who enrolled in Ashford from March 1, 2009, through April 30, 2020, and filed for a borrower defense loan discharge, a legal ground borrowers can take against a school that engaged in misconduct related to the loan or the educational services it provided. These borrowers will receive emails from the Department of Education in September and no further action is needed.

Borrowers who attended Ashford but did not file a borrower's defense discharge will need to complete an application on the Federal Student Aid website.

This discharge comes after litigation on behalf of the California Department of Justice against Ashford and its parent company, Zovio Inc., resulted in a judgment against both entities in March 2022.

"As the California Department of Justice proved in court, Ashford relied extensively on high-pressure and deceptive recruiting tactics to lure students," James Kvaal, the Department of Education under secretary, said in a statement. "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."

The Department of Education said Ashford told students that they could work as teachers, social workers, and nurses, but the institution never obtained state approval or accreditation for these programs. Ashford also misrepresented the cost of attendance and the amount of financial aid students would receive, saying the amount of loan debt would only be around $50 to $75 per month, the department said.

Ashford told students it had an accelerated degree path that was faster than a four-year school when its programs were structured for five years. It also exaggerated the transferability of credits to other institutions, according to the Department of Education.

Only 25% of borrowers graduated from Ashford within eight years of enrolling.

"What Ashford University did to its students was unconscionable and illegal," California Attorney General Rob Bonta said in a press release. "That’s why the California Department of Justice took Ashford and its parent company to court. Ultimately, we prevailed, securing more than $22 million in penalties."

The University of Arizona acquired Ashford University in August 2020 and rebranded it the University of Arizona Global Campus (UAGC). Direct ownership was completed in June 2023. In acquiring Ashford, UAGC assumed any liability from Ashford.