The Biden administration is canceling $72 million dollars in student loans for 2,300 borrowers who say they were cheated by Ashford University.
The U.S. Department of Education announced Wednesday that it will seek to recoup the money from the University of Arizona.
Ashford University used to be a for-profit college that was purchased by the UA in 2020.
It transformed Ashford into its own online branch called the University of Arizona Global Campus after it bought the college from San Diego-based company, Zovio.
Last year, a California court found that Ashford frequently lied to students to get them to enroll. The court found its recruiters misled students about the institution’s accreditation, costs and how long it would take to graduate.
The move will automatically discharge loans for the 2,300 borrowers who attended Ashford from March 2009 through April 2020 and applied for cancellation.
