Ashford University Class Action Lawsuit. 2021 Guide on How to Apply Closed School Student Loan Forgiveness

Ashford university class action lawsuit

The University of Ashford, based in San Diego, California, is an internet for-profit university. It is Bridgepoint Education’s primary education keeping. The university provides degree programs of bachelor and master in over 50 academic programs. Ashford University’s objective is to ensure high-quality, affordable, accessible, and creative instructional programs that fulfill people’s varied requirements to advance in their lives, jobs, and societies. Ashford University has been dealing with a lengthy sequence of lawsuits since 2006 with most recent of them being Ashford University class action lawsuit by the state of California.


Higher education intersects tech innovation at Ashford University. Ashford undergraduates can receive their degree online from just about anywhere they could bring their mobile phone, iPad, or computer while obtaining information and engaging with classmates. Ashford University provides courses on several occasions a year to suit the students’ calendars. The university has five schools: Liberal Arts College, Health College, Human Services, and Science, Education College, and Forbes Business School. 

State of California’s Ashford University class action lawsuit

Ashford university class action lawsuit

The state of California opens Ashford University class action lawsuit claiming that has transformed its admissions bureau into a sales team with a culture of “boiler room.” Employees were needed to reach registration quotas. To do so, recruitment counselors often either informed candidates that federal financial assistance would cover all of their expenditures. They sometimes even assured them that they might obtain more assistance than they had a chance.

As per the lawsuit, the university specifically exploited minorities, students with low-income. The recruitment of veterans was quite essential to the policy of the university. Undergraduates who receive tuition support from the GI Bill compensate for a third of their registered students, said the Chronicle.

According to Ashford University class action lawsuit, their vast bulk of income originate from government subsidies in the form of student loans and scholarships. As the college expanded exponentially — with its enrolled students growing over 80,000 students in 2011—Bridgepoint Education’s income rose. In 2012, the university was making $967 million.


Ashford University class action lawsuit also claims that by inflating its achievement training its graduates for employment, Bridgepoint lied to shareholders and equity filings. The authorities seek restitution for students and federal sanctions, as well as a preliminary injunction that bars Ashford from “potential comparable operations.”

How to find a closed school student loan forgiveness program to get rid of your debt

In 2019, using the Department of Education’s Closed School Loan Discharge Program, that is one of the most exceptional Federal Student Loan Forgiveness Programs presently available, is one of the easiest methods to get disposed of your student loans. Named a “Closed School Discharge,” the program enables you to clear out student loan debt from a college that was shut down before you could complete your education. Bear in mind that, however, that only individuals with federal student loans can apply Closed School Discharges. Yet you are eligible for the program if your debts are in the form of Federal family education loans and/or Federal Direct Loans.

Who can apply for Closed School Discharge program?

Ashford university class action lawsuit

The program’s particular conditions specify that you should not have finished all of your necessary graduation classes. Also you must still have attended the college at the moment it was closing down or within 120 days of the formal deadline.

The discharge consent is basically an instant method that is relatively simple to obtain if you meet these criteria, so I suggest you give full notice to this article and check the application instructions carefully since it offers you a very excellent opportunity of getting your student loan debt completely washed out.


Remember, though, that even if you are not eligible for the Closed School Discharge, you might still be allowed to contest the legitimacy of your loan through the Borrower’s Defense Against Repayment Program, which is particularly strong against the kinds of colleges that have been shut down in the past few years.

Eligibility criterias for Closed School Discharge program

You may apply for a Closed School Discharge if your college falls under one of the special conditions:

  • The college you study shuts down while you are still an official student there and due to the closure you are unable to finish your educational program
  • The college you attended ends within 120 days of withdrawing from their program.

Criterions that make you not eligible

Ashford university class action lawsuit

If you are under any of these classifications, you will not be qualified for a Closed School Discharge:  

  • University shut down more than 120 days after you withdrew from classes.
  • You are now receiving a similar academic degree at another college, having transferred academic credentials from the shut-down college, via a “teach-out” contract, or any other similar methods.
  • You have finished all the university courses needed in the program, even though you have not yet received your formal diploma or license for finishing.

Essentially, the program targets individuals who ended up robbed when their college was closed down. These people had no option to continue the program they piled up to compensate for college credit charges.

The application process for the Closed School Discharge program

How does the loan discharges from the closed school operate? It is comparatively straightforward.

  1.    Call or email someone who serves your credit. You give your monthly debt bills to this business or organization. Because each service provider has a distinct implementation method, you will need to contact whoever serves your debt to determine what they want to manage your request.
  2.    After you have obtained your documentation from credit servicer, fill it out entirely and send it by whatever methods they want (some credit servicers enable Internet-based apps, whereas others will require them by fax or by regular mail).

One significant thing to remember is that you will have to maintain paying installments until your credit service provider informs you (in written form) that you no longer have to pay them. Since credit servicer will not accept your request for release until you have submitted the formal documentation, any transfers that you skip after registering (but before obtaining permission) may cause economic issues. If you have difficulty receiving the documentation from your credit service provider then instead, you can use the 2016 Closed School Discharge Application Form. Bear in mind that the above link is to the formal request type of the Federal Government, which you may complete and present to your credit servicer.

Now we don’t know for sure if the Ashford University will shut down. However, if the state of California ends up winning the Ashford University class action lawsuit, you might use the information provided on Closed School Discharge program to your benefit.

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