Ashford University Class Action Lawsuit
Ashford University is a for-profit education center that received a complaint regarding their Ashford University Class Action Lawsuit and subsequently closed their online degree programs. Ashford University is also the target of numerous current lawsuits. In January, Ashford University announced that they would be instituting a class-action lawsuit against the University of Miami, Florida for “deceit and fraud.” Ashford University’s class action lawsuit focuses on their deceptive advertising practices, which targeted their online education programs as being “easy to learn” and “no accredited by anyone.” The lawsuit named the University of Miami and its division, the Florida education department, as well as several state officials.
Ashford University closed their online programs at the end of August, but not before thousands of graduates were affected adversely. Ashford University is a for-profit school that was forced to close their degree programs at the end of August, when the U.S. Justice Department shut down their college fraud investigation. Ashford University closed their online college degree programs because of the U.S. Justice Department’s investigation into their college’s questionable acceptance of fake degrees. Ashford University accepted tens of thousands of dollars in fraudulent student loans from students seeking degrees from accredited colleges and universities around the country, including the University of Miami. This resulted in thousands of college degree graduates with no college credits or skills to support themselves, which made them ineligible to receive financial assistance from the government’s federal loan programs.
The U.S. Justice Department shutdown the investigation due to budget cuts, which placed a tremendous strain on the investigative teams and workforce. Ashford University was one of many institutions that found themselves on the wrong side of the law after being defrauded by predatory colleges and universities, which rely on deceptive student loans in order to survive. Many students have been able to bring their defective college degree applications into full compliance with federal regulations thanks to the hard work of an Ashford University class action lawsuit lawyer. As a result, tens of thousands of former Ashford University students are currently receiving student loan forgiveness as a result of resolving this massive lawsuit.
The class action lawsuit was filed on behalf of former Ashford University students who were defrauded by predatory colleges and universities. Ashford University was one of twenty-nine colleges and universities that were the subjects of a massive Department of Education investigation. After the investigation, many schools were found to be in violation of Department of Education regulations. Ashford University was one of those institutions, which received a severe blow when the U.S. Justice Department shut it down. As a direct result of this class action lawsuit settlement, hundreds of former Ashford University students are being provided with generous amounts of student loan forgiveness, as well as other benefits.
As part of the class action lawsuit settlement, Ashford University was ordered to pay back over five million dollars in defaulted federal student loans, and over two million dollars in interest and penalties. In addition to paying back these funds, Ashford University has also been ordered to pay back the balance of over seven thousand student loan accounts that were closed during the course of this investigation. As a direct result of this loss of funding, dozens of Ashford University students have lost their jobs, had their financial aid reduced or have gone through traumatic personal life changes such as the death of a spouse or parent. In total, more than five hundred former Ashford University students have been awarded over two hundred and sixty thousand dollars in compensation. All of this is because Ashford University simply chose not to stand up to the federal government’s demands.
Because Ashford University could not meet their burden of fulfilling their legal obligations to their students, the court required them to enter into what is known as a “Dismissal of Default.” Once entered into by Ashford University, this process removes any lingering legal issues which would have existed if the student loan forgiveness programs had not been implemented. Therefore, it is important that if you are a constituent of the Ashford University class action lawsuit, you contact a Ashford attorney as soon as possible. While this may not remove the legal obligation which exists to repay your student loans, having a legal professional on your side will help ensure that you receive the fair and just resolution to your lawsuit, rather than being steamrolled by a rogue institution of higher education.