DeLauro, Durbin Send Letter Urging Department of Education to Recoup Funds from Predatory, For-Profit Colleges University of Phoenix and Ashford University

Today, U.S. Representative Rosa DeLauro (CT-03) and U.S.  Senate Majority Whip Dick Durbin (D-IL) sent a letter to the Department of Education urging them to recoup funds from for-profit colleges University of Phoenix and Ashford University after the agency cancelled student debts for borrowers that were defrauded by those institutions.

“For far too long, predatory for-profit colleges like Ashford and Phoenix have preyed on students, especially veterans, students of color, and low-income students,” the lawmakers wrote. “…We [therefore] urge the Department to aggressively recoup funds from these institutions.  This would send a strong warning signal to other predatory for-profit colleges that there are substantial financial consequences for defrauding students.”

For years, DeLauro and Durbin had advocated for stronger Borrower Defense regulations to protect student borrowers. Through this mechanism, the Department could recoup funds for borrowers defrauded by University of Phoenix and Ashford University.

“We also urge the Department to continue providing accessible and streamlined avenues for other defrauded borrowers who attended Ashford and Phoenix to receive relief through borrower defense to repayment,” the lawmakers continued. “…Finally, we urge the Department to review whether Ashford and Phoenix—each of which has engaged in extensive and sustained misconduct that has violated Department regulations, including the prohibition on making substantial misrepresentations to students—continue to remain eligible for federal student aid... It is time for the Department to hold these predatory schools accountable.”

The full letter can be viewed here.