University of Arizona Cleared of $72M Ashford Loan Responsibility
The University of Arizona has been cleared of $72 million in Ashford loan responsibility, university officials said. The decision ends a potential financial claim tied to loans discharged in 2023.
Education Department decision
President Suresh Garimella said the U.S. Department of Education resolved legacy financial matters from conduct that predated the 2020 acquisition. He made the remark during an online update in late March.
A December letter obtained and published by Filmogaz.com informed Garimella that the department would not pursue recoupment against Ashford University or the University of Arizona Global Campus. The letter came from the Federal Student Aid office and was signed by Rhonda Shaffer, the acting executive director of enforcement and oversight.
Background and federal reviews
Ashford University operated as a for-profit college under parent company Zovio before the 2020 sale to the University of Arizona. That history has driven scrutiny of recruitment and consumer protection practices.
In 2023, the Department of Education discharged roughly $72 million in student loans tied to borrower defense claims by Ashford attendees. The department’s review followed a California lawsuit that led to $22.4 million in civil penalties against Zovio.
In 2025, the department announced a further discharge that totaled about $4.5 billion. That relief covered some 261,000 borrowers who attended Ashford from March 2009 through April 2020.
What this means for the university
The Education Department also approved the University of Arizona’s application to integrate the online unit. It recognized the University of Arizona Global Campus as a public institution under the Arizona Board of Regents.
The university plans to align marketing for Arizona Online and UAGC. It will centralize functions for both units and focus UAGC on career education and workforce development.
In March, Garimella named Frank Dooley, former chancellor of Purdue Global, to lead the university’s online initiatives. The hire mirrors leadership moves at other public universities that absorbed previously for-profit operations.
Responses and next steps
Garimella thanked the Education Department and lawmakers for clearing the matter. He said the resolution offers certainty as UAGC becomes a deeper part of the university.
Department officials had previously indicated they might seek recoupment from the current owner and Zovio. The December letter, however, stated the agency would not collect the discharged sums from the University of Arizona.
- 2020: University of Arizona acquires Ashford and rebrands it as UAGC.
- 2022: Zovio winds down after the California ruling.
- 2023: Department discharges about $72 million tied to Ashford borrower claims.
- December (year): DOE letter notifies UA it will not seek recoupment.
- 2025: Additional discharge of roughly $4.5 billion across 261,000 borrowers.
