Student-loan borrowers amounting to $109 million from Ashford University and the University of Phoenix were wiped out, and lawmakers are pushing for relief.
Student loans were wiped out for thousands of students. (Photo: CBS)
$109 Million in Student Loan
Thousands of students from Ashford University and the University of Phoenix whom the school defrauded got relief after their student loans were wiped out. Around 2,300 borrowers from Ashford University amount to $72 million, while $37 million for 1,200 from the University of Texas.
In a published article in Business Insider, a democratic lawmaker wrote, “This would send a strong warning signal to other predatory for-profit colleges that there are substantial financial consequences for defrauding students,” Moreover, lawmakers are also calling to review if Ashford and Phoenix are still qualified for the aid.
READ ALSO: Texas Stimulus Check November 2023: How To Track The TRS Benefit?
Lawmakers Pushing for Relief
Democratic lawmakers sent a letter to Pres. Joe Biden to give relief and take a step further after the cancellation of student loans from two schools. Sen. Dick Durbin and Rep. Rosa DeLauro led a group of Democrats sent a letter last week to Education Secretary Miguel Cardona requesting continued enforcement over for-profit schools that were accused of fraud.
They want Ashford University and the University of Texas to recoup the funds from these schools so that taxpayers are not left holding the bag and other predatory for-profit colleges are on notice that they will be held accountable for unscrupulous behavior.
READ ALSO: Tax Incentives For Installing Solar Panels At Ohio Residences
