The U.S. Department of Education has backed away from seeking repayment from the University of Arizona after the university acquired Ashford University (rebranded as University of Arizona Global Campus) in 2020. In a December letter to President Suresh Garimella, an ED official said it was “not appropriate” to pursue a recoupment action tied to $72 million in discharged loans connected to borrower-defense claims resolved in 2023. The decision follows years of scrutiny of Ashford’s recruiting and outcomes, including ED accusations of “deceptive recruiting tactics” and a low graduation rate. California’s successful suit against former Ashford owner Zovio resulted in civil penalties and further fed the federal review. In late March, Garimella publicly said ED “resolved all legacy financial matters” stemming from pre-acquisition conduct. The latest development signals a shift in how ED is handling legacy accountability—especially as Trump-era oversight appears more cautious about pursuing recoupment from current institutional owners.