Ashford University Loan Discharge: In 2025, the U.S. Department of Education (ED) announced a significant development for former students of Ashford University (now the University of Arizona Global Campus) who are struggling with student loans.
Thousands of borrowers who attended the university between March 1, 2009, and April 30, 2020, will be eligible for 100% loan discharge, with approximately $4.5 billion in student loans to be cleared. This relief comes as part of the ED’s Borrower Defense to Repayment program, designed to provide relief for students who were misled by their institutions.
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In this article, we will explain everything you need to know about Ashford University loan discharge, eligibility, and how it affects you.
What is Ashford University Loan Discharge?
Ashford University loan discharge is a program under the Borrower Defense to Repayment (BDR) rule. This initiative aims to discharge federal student loans for borrowers who were misled by their institution. For Ashford University students, the ED found that the institution made significant misrepresentations regarding:
- Licensing and Employment Opportunities: Students were misled about their ability to obtain necessary licensure for their degree programs.
- Transfer of Credits: Students were misled about the ease of transferring credits to other institutions.
- Cost of Education and Financial Aid: Ashford misrepresented the true cost of their education and the financial aid available.
- Time to Degree Completion: Students were misled about the time it would take to earn their degrees.
As a result, approximately 261,000 borrowers are set to benefit from this loan discharge.
Key Highlights of the Ashford University Loan Discharge
| Feature | Details |
|---|---|
| Number of Borrowers | 261,000 |
| Loan Discharge Amount | $4.5 billion |
| Eligibility Period | March 1, 2009, to April 30, 2020 |
| Type of Relief | 100% discharge of federal student loans |
| Action Required | No action required from borrowers |
| Refunds | Payments made will be refunded |
| Affected Loans | Federal student loans, including Direct Loans, FFEL, and Perkins Loans |
Who is Eligible for the Ashford University Loan Discharge?
To be eligible for this loan discharge, borrowers must have:
- Enrolled in Ashford University (now University of Arizona Global Campus) between March 1, 2009, and April 30, 2020.
- Taken federal student loans to pay for their education at Ashford University.
- Been harmed by Ashford University’s misrepresentations, as mentioned earlier.
The discharge applies automatically to all eligible borrowers. There is no need for students to file an application for relief. If you are affected, the ED will notify you directly.
How Will Borrowers Be Affected?
Once the loan discharge is processed:
- Loan Forbearance: Borrowers will not have to make payments while the ED processes their discharges.
- Adjusted Loan Balances: Any remaining loan balances will be adjusted or cleared.
- Refunds: Any payments made toward the federal student loans will be refunded.
- Credit Trade Line Deletion: Any negative credit reports related to the loan will be deleted.
It is important to note that this process may take time, especially for those who consolidated loans or had their loans serviced by multiple servicers.
What Should Borrowers Do Now?
If you are eligible for the Ashford University loan discharge, there is no need to take immediate action. However, keep an eye on your mail and email for official notifications from the Department of Education.
Here’s what you can expect:
- Notification: You will receive an official notice from the ED regarding your loan discharge.
- Forbearance: Your loans will stay in forbearance (you do not need to make payments).
- Processing Time: Be patient, as the process may take some time. If you have multiple servicers or have consolidated your loans, the process may be slower.
Frequently Asked Questions (FAQs)
Q1: Do I need to apply for the Ashford University loan discharge?
No, the loan discharge is automatic for all eligible borrowers. The Department of Education will handle the process, and you will receive notifications.
Q2: How long will it take to process my loan discharge?
The processing time may vary depending on factors like loan consolidation or the number of servicers involved. It may take several months, so stay patient.
Q3: Will I receive a refund for the payments I made?
Yes, any payments made toward your federal student loans will be refunded once the discharge is processed.
Q4: What if I have already consolidated my loans?
If you have consolidated your loans, the discharge may take longer. The Department of Education will still process the discharge and refund any applicable payments.
Q5: How will this discharge affect my credit score?
Once the discharge is processed, any negative credit reports related to your loans will be deleted, potentially improving your credit score.
Conclusion
The Ashford University loan discharge is a significant step in providing relief to students who were misled by their institution. If you were a borrower during the period from March 1, 2009, to April 30, 2020, and are affected by Ashford’s misrepresentations, you are likely eligible for a 100% discharge of your federal student loans.
Remember, there’s no need to take any action right now; just stay alert for the official notifications from the Department of Education. Once the process is complete, you’ll see your loans cleared, and any payments you made will be refunded.
For more info, visit the official source.
