The U.S. Department of Education has withdrawn a demand for payment from the University of Arizona to recoup $72 million tied to borrower-defense loan discharges connected to claims that students were misled by Ashford University. In a letter referenced by the Arizona Daily Star and obtained via a public records request, an ED official in the Office of Federal Student Aid told University of Arizona president Suresh Garimella that it was not appropriate to pursue a recoupment action against Ashford’s successor institution, University of Arizona Global Campus (UAGC). ED began seeking recoupment in August 2023 after it cleared loans for about 2,300 Ashford students under borrower-defense relief. The University of Arizona previously argued it should not be held responsible for Ashford’s alleged conduct before the 2020 acquisition and reorganization. Separately, the university said it is integrating UAGC with Arizona Online rather than keeping an affiliated separate institution. UAGC’s accreditation reaffirmed by WASC Senior College and University Commission last summer was cited in the report.