If you attended Ashford University between 2009 and 2020, you may be eligible for significant financial relief. Recent legal settlements have paved the way for thousands of former students to receive debt discharges and refunds due to misleading recruitment practices. Understanding the steps to take can help you secure the compensation or loan forgiveness you deserve.
Understanding the Ashford University Settlement
The legal actions against Ashford University, which is now known as the University of Arizona Global Campus (UAGC), stem from allegations of deceptive marketing. Investigations revealed that the institution often provided misleading information to prospective students regarding career outcomes and financial costs.
State authorities, particularly in California, found that the university’s recruiters frequently exaggerated the value of an Ashford degree. They were also found to have misrepresented the ability of graduates to secure licenses in specialized fields like teaching and nursing.
As a result of these findings, a massive settlement was reached to provide relief to those impacted. This includes the cancellation of millions of dollars in student debt and direct payments to eligible individuals who were misled during the enrollment process.
Who Is Eligible for the Settlement?
Eligibility for the Ashford settlement generally depends on when you were enrolled and the specific types of loans or payments you made. While the criteria can vary based on specific state settlements, the following groups are typically prioritized:
- California Students: Those who attended Ashford University between March 1, 2009, and April 30, 2020, and were subject to the misleading practices identified by the court.
- Borrower Defense Claimants: Students who filed a Borrower Defense to Repayment claim with the Department of Education regarding Ashford.
- Direct Loan Holders: Individuals with federal student loans used to pay for Ashford programs during the period of alleged misconduct.
It is important to note that even if you have already graduated or withdrew from the school years ago, you may still be eligible for relief. The settlement aims to address the long-term financial harm caused by the institution’s practices.
How to File Your Claim
The process for receiving your settlement benefits depends on whether you are seeking federal loan forgiveness or a refund from a state-led settlement fund. Following these steps will ensure you are in the best position to receive help.
1. Check for Official Notices
Most eligible students will receive a notice via email or traditional mail. These notices are sent by the settlement administrator or the Department of Education. They contain specific instructions and unique claim codes that simplify the process.
2. Submit a Borrower Defense Application
If your federal loans have not been automatically discharged, you should file a Borrower Defense to Repayment application. This is a formal request to the federal government to forgive your loans because the school misled you or violated state law.
When filling out the application, be as detailed as possible. Mention specific instances where recruiters made promises about job placement, salary expectations, or the transferability of credits that turned out to be false.
3. Update Your Contact Information
Ensure that your current address and email are on file with the Federal Student Aid (FSA) office and any settlement administrators. Many claims go unpaid simply because the administrator could not locate the eligible recipient.
What Benefits Are Available?
The Ashford settlement provides several different types of relief. Depending on your situation, you may receive one or more of the following benefits:
- Full Loan Discharge: The complete cancellation of remaining federal student loan balances associated with your time at Ashford.
- Refunds of Past Payments: Reimbursement for money you already paid toward those federal loans.
- Credit Repair: The removal of negative marks on your credit report related to the discharged loans.
- Direct Cash Payments: For certain state-specific settlements, students may receive a check for a portion of the settlement fund.
For many, the most significant benefit is the removal of the debt burden, which allows former students to move forward with their financial lives without the weight of a degree that did not deliver on its promises.
Important Deadlines to Remember
Legal settlements always come with strict timelines. Missing a deadline can result in the permanent loss of your right to claim a refund or debt discharge. While some discharges are processed automatically, others require proactive filing.
Keep a close eye on any correspondence from the “Student Loan Relief” or “Settlement Administrator.” These documents will clearly state the date by which you must submit your forms. If you are filing for Borrower Defense, it is best to do so as soon as possible to ensure you are included in the current wave of approvals.
Common Questions About the Settlement
Do I need a lawyer to file a claim?
No, you do not need to hire a private attorney to benefit from these settlements. The processes established by the Department of Education and state Attorneys General are designed for students to navigate on their own at no cost.
What if I don’t have my old enrollment records?
While having records is helpful, the Department of Education and the settlement administrators usually have access to the university’s enrollment data. You can often prove your attendance through your federal student aid history.
Is this the same as the Sweet v. Cardona settlement?
Ashford University was one of the schools listed in the Sweet v. Cardona class-action lawsuit. If you were a member of that class, your relief might be processed through that specific legal agreement, which provides for expedited discharges.
Taking Action Today
The Ashford settlement represents a significant victory for student consumer protection. If you feel you were misled by the university’s promises, now is the time to act. By staying informed and submitting the necessary paperwork, you can take a major step toward financial recovery.
If you found this guide helpful, consider exploring our other articles on student loan management and consumer rights. Staying informed is the best way to protect your financial future and make the most of the resources available to you.