Understanding Ashford University Student Loan Forgiveness Requirements

The landscape of student loan forgiveness is complex and ever-changing. For former Ashford University students, understanding the specific requirements for loan forgiveness is crucial. This article aims to provide a comprehensive overview of the available avenues for Ashford University student loan forgiveness, drawing upon recent actions by the Department of Education (ED) and ongoing legal proceedings.

Background: Ashford University and Allegations of Misconduct

Ashford University, a predominantly online institution, faced significant scrutiny regarding its practices. A court found that between March 1, 2009, and April 30, 2020, Ashford and Zovio gave students false or misleading information about cost and financial aid, the pace of degree programs, career outcomes, and transfer credit to induce them to enroll. These misrepresentations led to legal action and subsequent loan forgiveness programs for affected students. The University of Arizona acquired the institution in 2020 and rebranded it as the University of Arizona Global Campus. The California suit wasn’t the first time Ashford and Bridgeport Education have experienced legal issues. In 2014, Ashford and Bridgeport agreed to settle consumer fraud claims in Iowa for $7.25 million. The Iowa attorney general said at the time that Ashford “used unconscionable sales practices” and that telemarketers lied to people, inducing them to enroll. Ashford admitted to no wrongdoing in that settlement.

Borrower Defense to Repayment: A Key Avenue for Forgiveness

One of the primary avenues for Ashford University student loan forgiveness is the borrower defense to repayment program. This program allows the federal government to grant discharges for students who took out loans to attend schools subsequently found to have engaged in misconduct. Borrowers approved through the program usually have taken out loans to attend schools subsequently found to have engaged in misconduct, such as exaggerating how much money students can expect to make after graduation. The ED approved student loan forgiveness for 4,550 borrowers through the IBR plan, totaling $600 million in forgiveness. Additionally, ED approved forgiveness through borrower defense to repayment for 4,100 borrowers who attended DeVry University.

In August 2023, the ED forgave $72 million in loans for 2,300 former Ashford students after finding that the college repeatedly lied to them about the cost, time requirement, and value of its degree program. Building on this, the agency took further action, totaling $4.5 billion in forgiveness. These discharges through the department’s borrower-defense program are among the largest in the program’s history.

Eligibility for Borrower Defense Based on Ashford's Misconduct

To be eligible for borrower defense based on Ashford's misconduct, borrowers must demonstrate that Ashford misled them, violated state laws, or engaged in other misconduct that affected their decision to borrow federal student loans. Specific misrepresentations cited by the court include false or misleading information about:

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Cost and financial aid
The pace of degree programs
Career outcomes
Transferability of credits

How to Apply for Borrower Defense

Borrowers can apply for borrower defense here. For an informational guide on applying for borrower defense, click here. You can apply for borrower defense even if you are currently enrolled in the school you would be applying for. It is important that borrowers provide detailed information and supporting documentation to support their claims of misrepresentation.

The Sweet v. Cardona Settlement: Implications for Ashford Borrowers

The Sweet v. Cardona (formerly Sweet v. DeVos) settlement is a significant legal agreement that impacts borrowers who submitted borrower defense applications. The settlement class is defined as “all individuals who had a borrower defense application pending as of June 22, 2022.” Under the settlement, the Department of Education agreed to rescind all borrower defense denials that it issued between December 2019 and October 2020.

Automatic Relief Group

The settlement divides the class into two groups. The first group is the automatic relief group. You are a member of this group if you are a Class Member who submitted a borrower defense application relating to a school or schools on this list (often referred to as the “Exhibit C” list). If you are in this group, then you are entitled to the following relief: (i) discharge of the outstanding loans that were the subject of your application, (ii) refunds of any amounts you previously paid to the federal government toward those loans, and (iii) deletion of the credit tradeline associated with those loans from your credit report (“Full Settlement Relief”).

The original deadline for all members of the automatic relief group to receive Full Settlement Relief was January 28, 2024. The Department of Education failed to meet that deadline, and Plaintiffs sought enforcement by the court. For more information about what to expect if you are in the automatic relief group and have not yet received Full Settlement Relief.

Decision Group

The second group is the decision group. You are a member of this group if you are a Class Member who submitted a borrower defense application relating to a school or schools not on the Exhibit C list. You will receive this relief within one year of the date you receive your approval decision. If you applied for borrower defense after November 16, 2022, then you are not affected by the Sweet settlement.

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Key Dates and Deadlines under the Sweet v. Cardona Settlement

Decision Group 1: Decision group members in group 1 (people who applied for borrower defense on or before December 31, 2017) whose applications were approved should have received Full Settlement Relief by December 20, 2024. Please be patient as the distribution of relief for this group is currently in process.
The “revise and resubmit” deadline passed for decision group 5 on January 28, 2026. You should receive a decision on your resubmitted application within six months of the date you submitted it.
On December 11, 2025, the District Court confirmed that the Department had to decide all Post-Class applications relating to an Exhibit C school by January 28, 2026. The Court extended the decision deadline for Post-Class applications relating to other schools to April 15, 2026.
If your application has been approved, you should receive your settlement relief within one year of the date when you received your approval notice. If your application has been denied, there are still steps you can take.

It is crucial for borrowers to stay informed about these deadlines and take appropriate action to protect their rights.

Post-Class Applicants and Reconsideration

Post-Class Applicants who receive denials can request reconsideration through the FSA portal. All Post-Class Applicants who received denials are eligible to submit for reconsideration. There is no formal deadline for borrowers to submit reconsideration requests, but because there is also no formal deadline for the Department to return decisions on those requests, we encourage you to act quickly.

Other Avenues for Student Loan Forgiveness

While borrower defense and the Sweet v. Cardona settlement are significant avenues for Ashford University student loan forgiveness, other federal programs may also be available:

Income-Driven Repayment (IDR) Forgiveness: ED noted that it completed the income-driven repayment (IDR) payment count adjustment, correcting eligible payment counts on borrowers’ accounts. However, ED noted some borrowers may see one or two additional months credited in the coming weeks. Additionally, ED has launched the ability for borrowers to track their IDR payment progress on StudentAid.gov.
Public Service Loan Forgiveness (PSLF): Earlier this week, the Biden administration announced new approvals for student loan debt forgiveness for over 150,000 borrowers through borrower defense, Public Service Loan Forgiveness (PSLF), and total and permanent disabilities discharges.
Closed School Discharge: ED also gave an update on Thursday regarding closed school discharges. However, ED has determined that several schools closed under “exceptional circumstances.” This determination warrants allowing borrowers who didn’t complete and were enrolled in the school more than 120 days prior to its closure to qualify for a closed school discharge. ED has directed Federal Student Aid (FSA) to make these borrowers aware of their eligibility and to allow automatic discharges for those affected by the outlined school closures.

Addressing Uncertainty and Potential Scams

Borrowers should be aware that there may be scammers contacting you regarding the Sweet v. McMahon lawsuit and settlement. As the Federal Trade Commission (FTC) says: Don’t pay anybody for anything related to your borrower defense claim. Nobody can move you up in line, give you special access, or guarantee a successful application. Not for free, and certainly not for money. And only scammers will ask. And if you spot a scam, tell the FTC: ReportFraud.ftc.gov.

Actions Against Individuals Involved in Ashford's Misconduct

Officials proposed a governmentwide debarment of Andrew Clark, who in 2004 founded Bridgepoint Education, which later became Zovio. “The conduct of Ashford can be imputed to Mr. Clark because he participated in, knew, or had reason to know of Ashford’s misrepresentations,” the department said in a news release.

The Broader Context of Student Loan Forgiveness

The new batch of debt cancellation comes a few days after the administration said it passed the milestone of forgiving nearly $200 billion in student loan debt for more than five million borrowers during Joe Biden's presidency. Biden initially hoped to waive student loan debt for tens of millions of Americans, however, his administration didn't come close to that goal, due in part to congressional opposition and court challenges.

Navigating FFEL Loans and Consolidation

There are two types of FFEL(P) loans: some are held by the government, and some are held by private bank lenders. Loans held by private bank lenders are known as “commercially held FFELs.” FFEL and FFELP loans are considered “federal student loans” for purposes of the settlement. This means that, if you are entitled to relief through the settlement, any FFEL and FFELP loans that were the subject of your BD claim(s) will be discharged.

If you consolidated FFEL loans from multiple schools into one or more FFEL consolidation loans, only the portion of the consolidation loan(s) that relates to the school(s) covered by your borrower defense application will be discharged. If your FFEL or FFELP loans were commercially held and you made payments on those loans, then you will NOT be entitled to a refund of those payments. Although both are considered “federal loans” because they were authorized by federal law, payments that you made on commercially held FFEL or FFELP loans were made to bank lenders, not to the Department of Education. For that reason, such payments will not be included in any refund you receive under the Sweet settlement, because the Department of Education does not have the legal authority to refund payments made to commercial lenders. However, if you consolidated your FFEL or FFELP loans into Direct Consolidation Loans, then any payments you made on the Direct Consolidation Loans will be eligible for a refund.

Refunds for Garnished Wages and Tax Refunds

Regardless of your type of loan, if the Department of Education garnished from your wages and/or took from your income tax refunds in connection with the loans that were the subject of your borrower defense application, those garnishments will be refunded.

Parent Plus Loans and Borrower Defense

In order to get settlement relief relating to Parent Plus loans, a parent must have applied for borrower defense separately from their child (the student) during the applicable settlement time frames, even if the student is already included in the class.

If you are a parent borrower, and you applied for borrower defense to repayment of a Parent Plus loan on or before June 22, 2022, you are a member of the settlement class. If you applied for borrower defense for a Parent Plus loan after June 22, 2022, and before November 16, 2022, you are a Post-Class Applicant. If you applied for borrower defense for a Parent Plus loan after November 16, 2022, or if you apply now, your application will be decided according to applicable regulations, not under the Sweet settlement.

Interest Accrual and Forbearance

The Department of Education will hold Class Members in forbearance or stopped collection status, and will reimburse you for any accrual of interest, until you receive your settlement relief or, where applicable for members of the decision group, until a decision denying settlement relief becomes final. However, like with other types of forbearance, interest will still accrue on your loans while your Borrower Defense application is pending. Whether you receive a refund of that interest upon resolution of your Borrower Defense application will depend on the applicable regulations.

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