dailyloe.com – The U.S. Department of Education has withdrawn a demand for the University of Arizona to repay $72 million. This sum covered loan debt canceled for students of the former Ashford University. The Arizona Daily Star first reported this development. The department cleared the loans for 2,300 Ashford students in August 2023.
Those students had claimed the for-profit university misled them. They alleged Ashford misrepresented the cost and value of its degrees. The University of Arizona purchased Ashford University in 2020. It subsequently transformed the institution into the University of Arizona Global Campus.
University leaders previously argued they should not be liable. They stated they were not responsible for Ashford’s actions before the 2020 purchase. A December letter from an ED official informed the university of the decision. The Star obtained this letter through a public records request.
Rhonda Shaffer, an official from the Office of Federal Student Aid, wrote the letter. Shaffer wrote the department determined recoupment action was not appropriate. The decision applied to Ashford University and thus the University of Arizona Global Campus. It covered the $72 million in loan discharges granted in August 2023.
The letter stated the Education Department has discretion over such claims. It has discretion on whether to pursue relief from borrower-defense claims. The letter was addressed to University of Arizona president Suresh Garimella. The department chose not to bring a recoupment action.
University of Arizona spokesperson Mitch Zak responded with a statement. Zak stated the decision provides important clarity for the institution. He said it affirms the standards under which UAGC has operated. This has been the case since it came under university ownership.
The University of Arizona made another significant announcement in March. It plans to integrate University of Arizona Global Campus with Arizona Online. It will not keep UAGC as a separate affiliated institution. This move represents a consolidation of online education efforts.
The university also noted UAGC’s accreditation was recently reaffirmed. The WASC Senior College and University Commission reaffirmed it last summer. This accreditation news was part of the university’s March announcement. It signals ongoing institutional stability for the online campus.
