ED Drops Plans to Recoup $72M From University of Arizona

The US Department of Education has pulled again a requirement for fee from the University of Arizona to cowl $72 million in mortgage debt canceled for college students who claimed they have been defrauded by Ashford University, The Arizona Daily Star reported. The University of Arizona purchased Ashforda for-profit on-line establishment, in 2020, and turned it into University of Arizona Global Campus.

The division started seeking to recover funds in August 2023 after it cleared loans for two,300 Ashford college students who claimed the university misled them about the price and worth of levels. At the time, University of Arizona leaders argued that they should not be on the hook for Ashford’s actions earlier than the acquisition.

But the Education Department has “discretion” over whether or not to pursue reduction from the borrower-defense declare, learn a December letter from an ED official to University of Arizona president Suresh Garimella, obtained by the star by way of a public information request.

“The Department has determined that it is not appropriate to bring a recovery action against Ashford University, and thus the University of Arizona Global Campus, for the $72 million in loan discharges granted in August 2023,” Rhonda Shaffer, the official from the division’s Office of Federal Student Aid, wrote within the letter.

Arizona spokesperson Mitch Zak wrote in a press release to the star that the choice “provides important clarity and affirms the standards under which the University of Arizona Global Campus has operated since coming under university ownership.”

The University of Arizona additionally announced in March that it is going to be integrating UAGC with Arizona Online, somewhat than holding it as a separate affiliated establishment. UAGC’s accreditation was reaffirmed by WASC Senior College and University Commission final summer season, in accordance to the announcement.