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The San Diego Superior Court ruled in the state of California’s favor in a lawsuit against Ashford University, an online, for-profit institution, and its parent company, Zovio, according to a press release from the California Department of Justice.
The court ordered Ashford University and Zovio to pay more than $22.37 million in penalties for encouraging students to enroll by giving them misleading information about cost and financial aid, job market outcomes, the pace of degree programs, and transfer credits.
“Today’s decision is a win for the many Californians whose college dreams turned into nightmares after they enrolled in Ashford University,” said California attorney general Rob Bonta in the release. “Ashford made false promises to students about the value of an Ashford degree, leaving students with mounting debt, broken promises, and searching for a job. While we can't turn back the clock for these students, this decision should send a strong message: If you engage in deceptive practices in order to pad your bottom line, my office will hold you accountable.”
Bonta advocated for the U.S. Department of Education to relieve Ashford students of their federal student loans.
“I urge [Education] Secretary [Miguel] Cardona to act swiftly to provide this relief,” he said.
