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Forbes
Forbes
Business
Zack Friedman, Contributor

This University Must Pay $22 Million For False Claims About Student Loans

$22 million for ruling on student loans. getty

This university must pay $22 million for false claims about student loans.

Here’s what you need to know.

Student Loans

A San Diego Superior Court judge ruled that Ashford University, an online for-profit college, and its parent company, Zovio, must pay $22.37 million in penalties for misleading student in multiple ways. The Court ruled that Ashford:

  • misled students about the amount of student loans they would receive and the costs they would cover;
  • misled students about their ability to become teachers using an Ashford degree;
  • misled students about their ability to become nurses, social workers and drug and alcohol counselors;
  • misled students by “downplaying” their student debt;
  • misrepresented rules on federal financial aid;
  • misrepresented students’ ability to transfer credits; and
  • misled students about the pace and time commitment of an Ashford degree.

“Today’s decision is a win for the many Californians whose college dreams turned into nightmares after they enrolled in Ashford University,” Attorney General Rob Bonta said. “Ashford made false promises to students about the value of an Ashford degree, leaving students with mounting debt, broken promises, and searching for a job.

The civil judgment follows an 18-day bench trial. Ashford University, which at one time had 80,000 students, was acquired in 2020 by the non-profit University of Arizona Global Campus, which provides online higher education programs. Students at Ashford reportedly paid approximately $40,000 to $60,000 for a Bachelor’s degree. California’s attorney general is urging U.S. Secretary of Education Miguel Cardona to provide student loan relief to these borrowers for their student loans.

“The Court’s findings provide a strong basis for the Department of Education to provide Ashford students with relief from their federal student loans,” Bonta said. “I urge Secretary Cardona to act swiftly to provide this relief.”


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