​Here’s who qualifies for Biden’s last round of $4.5 billion in student loan forgiveness: 261,000 borrowers benefited 

16/01/2025
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10:40
CSTThe Biden administration has finalized a $4.5 billionstudent loan forgiveness plan, benefiting 261,000 borrowers who attended Ashford University between 2009 and 2020. This marks the final major round of student debt relief under President Biden, targeting those who were misled by the now-defunct for-profit institution.The decision follows investigations that revealed Ashford misrepresented critical aspects of its programs, including costs, transfer credits, and career prospects. “Ninety percent of Ashford students never graduated,” said James Kvaal, Under Secretary of Education. “And those who did were often left with substantial debt and low incomes. Today’s announcement will finally provide relief to many who were harmed by Ashford’s illegal actions.”Borrowers affected by this decision won’t need to take any action. Emails will inform them that their remaining loan balances will be discharged, and no further payments will be required. This discharge extends even to borrowers who didn’t formally apply for relief through the Borrower Defense program, the legal framework for forgiving loans tied to institutional misconduct.California played a pivotal role in exposing Ashford’s fraudulent practices. Attorney General Rob Bonta underscored the school’s false promises. “Ashford sold dreams of brighter futures but left students in worse situations-mounting debt, no degrees, and broken promises,” Bonta said. California’s legal action against Ashford’s parent company, Zovio, resulted in a $20 million penalty and laid the groundwork for this federal relief.Additionally, the Department of Education has proposed a ban on Andrew Clark, Ashford’s founder and former CEO, from participating in federally funded educational programs. Clark is accused of fostering a culture focused on enrollment numbers over ethics. “The evidence is overwhelming,” the Department stated, citing internal memos and employee testimonies that highlighted aggressive, misleading recruitment practices.This forgiveness effort is part of a larger initiative under the Biden administration, which has approved $34 billion in debt relief for over 1.9 million borrowers defrauded by predatory schools. While broader plans for nationwide student debt cancellation have faced legal challenges, targeted measures like this continue to make an impact.For former Ashford students, this is a step toward reclaiming financial stability after years of being burdened by deceptive practices. As Secretary of Education Miguel Cardona said, “This relief helps restore hope and opportunity for those who were wronged.”