California Attorney General Rob Bonta responded to the Biden-Harris Administration's recent decision to discharge debt for 261,000 former Ashford University students. The U.S. Department of Education announced this move, which will clear $4.5 billion in student loans.
The legal issues surrounding Ashford University began in 2017 when the California Department of Justice filed a lawsuit against the institution. The suit alleged that Ashford misled students with false promises and inaccurate information, leading them to take out federal loans based on these claims.
In March 2022, the San Diego Superior Court ruled that Ashford had violated laws by providing misleading information regarding career outcomes, costs, financial aid, degree program pacing, and transfer credits. This ruling was upheld by the California Court of Appeal in 2024, along with $21 million in penalties against Ashford.
Attorney General Bonta stated: “Ashford University made false promises to students about the value of an Ashford degree and the opportunities it would create and instead left students worse off: with mounting debt and searching for a job. This is unacceptable and illegal. California stopped this fraud when we sued Ashford and held it accountable for its deception.”
Bonta further expressed pride in California's role in setting a precedent that led to federal relief efforts: “I am proud that California's work taking this case to trial paved the way for the U.S. Department of Education to provide relief today for the hundreds of thousands of Americans who were deceived by Ashford. I commend the Biden Administration and the Department of Education for making sure that students who were scammed into trusting in Ashford have the opportunity for a brighter future they always deserved.”