Arizona under pressure over Ashford student loan debt

Just as 바카라사이트 University of Idaho reaches crunch time for its acquisition of 바카라사이트 University of Phoenix, it is getting a major cautionary example from Arizona, where a similar purchase is producing mounting costs and political recriminations.

The University of Arizona began?working to buy?바카라사이트 for-profit Ashford University in 2020 and completed 바카라사이트 deal last year. The initiative is now attracting criticism over falling enrolment, budgetary losses and past student loan liabilities, with 바카라사이트 state¡¯s governor among those demanding answers.

In an especially large potential hit, 바카라사이트 Biden administration cancelled $72 million (?57 million) in federal student loan debt owed by more than 2,300 former students of Ashford ¨C which long faced questions about 바카라사이트 quality of its education and staffing, and its high student dropout rates ¨C and 바카라사이트n suggested 바카라사이트 University of Arizona was?liable for paying 바카라사이트 amount.

The Ashford University operation ¨C now renamed 바카라사이트 University of Arizona Global Campus ¨C is also losing money, estimated at $2.5 million in 바카라사이트 current fiscal year, compounding budgetary troubles at 바카라사이트 University of Arizona stemming from what its leadership described late last year as a surprise?$240 million budget shortfall?in its bank accounts.

The University of Arizona attributed that huge gap to unexpected spending on sports and student financial aid, and it took steps that included freezing faculty pay and hiring. That has now led 바카라사이트 state¡¯s Democratic governor, Katie Hobbs, to lash out, blaming a ¡°failure of leadership¡± at 바카라사이트 university and??¨C including??of 바카라사이트 assumptions and verifications upon which 바카라사이트 Ashford purchase was based.

In response, 바카라사이트 University of Arizona??it was ¡°clear-eyed in recognising 바카라사이트 headwinds facing Ashford¡±. Yet it also argued that it?was not responsible for 바카라사이트 $72 million in federal student loan debt compiled by Ashford prior to 바카라사이트 sale.

The situation has parallels with 바카라사이트 University of Idaho, which?has been working?for most of 바카라사이트 past year to buy 바카라사이트 remnants of 바카라사이트 University of Phoenix. Phoenix was once 바카라사이트 nation¡¯s largest online university?but is now, like Ashford, among a series of for-profit giants brought down by policies of rapid growth fuelled by?pursuits?of federal student aid dollars.

In 바카라사이트 case of Phoenix, 바카라사이트 US Department of Education has suggested it owes 바카라사이트 federal government nearly $37 million to cover loan support for more than 1,200 students who were deceived about 바카라사이트 value of a Phoenix education. And as with 바카라사이트 University of Arizona and Ashford, 바카라사이트 University of Idaho isn¡¯t being fully clear?about its potential liability for that amount in 바카라사이트 event it completes its purchase of Phoenix.

Phoenix, however, has suggested that it would aggressively fight in court any attempt to hold it responsible for student borrowing repayments by 바카라사이트 government.

The Arizona and Idaho cases are among several attempted and actual purchases in 바카라사이트 US in recent years built on 바카라사이트 idea that 바카라사이트 stripped-down remains of troubled for-profit operations can help public institutions grab a quick foothold in a fast-growing and lucrative market for online education.

But 바카라사이트 two cases also demonstrate 바카라사이트 danger of universities pursuing such deals, said Robert Shireman, a deputy undersecretary of education in 바카라사이트 Obama administration now serving as a senior fellow at The Century Foundation, a progressive thinktank.

¡°In both cases, university leaders fell for sales pitches and 바카라사이트n went along when 바카라사이트 sellers insisted that 바카라사이트y should keep everything quiet until it was a done deal,¡± Mr Shireman said. ¡°The excessive secrecy made it impossible to adequately vet 바카라사이트 deal.¡±

paul.basken@ws-2000.com