The U.S. Department of Education backed off a proposed recoupment action tied to $72 million in borrower-defense loan discharges for former Ashford University students. The University of Arizona Global Campus, acquired in 2020 after Ashford’s for-profit history under Zovio, had faced potential liability based on earlier government statements. A letter obtained by the Arizona Daily Star shows an Education Department official told President Suresh Garimella in December that it was “not appropriate to bring a recoupment action” against Ashford University or the current owner, UAGC. The department cited discretion over recoupment and effectively shifted the outcome from reimbursement litigation risk to a closed legacy matter. The case stems from federal review of Ashford and Zovio’s recruitment practices after California sued Zovio and won civil penalties for misleading students. In 2023 and 2025, Education Department loan discharges affected Ashford borrowers through borrower defense claims, including the later, broader $4.5 billion discharge noted across a large borrower population. For higher-ed leaders and compliance teams, the decision clarifies the federal posture under a changing administration and provides a concrete example of how borrower-defense remediation can end without recoupment against an acquiring public institution. It may also influence how institutions assess acquisition risk for legacy student outcomes and recruitment conduct.