A for-profit network that faced legal battles for years has finally closed its doors. The Education Department has given the green light for around $6 billion in student loan relief to over 300,000 students who were deceived into accumulating significant debt.
This debt forgiveness, unveiled on Wednesday, targets students who attended The Art Institutes, a chain of for-profit colleges marred by fraud allegations and eventual closure in September. Education Management Corp., the parent company, settled with the Justice Department for nearly $100 million in 2015 following a string of lawsuits and lost its accreditation years prior.
The Education Department, after an independent review of data from three states’ attorneys general, found evidence of falsified employment rates and exaggerated employer relationships by the institution.
President Joe Biden emphasized forgiveness as a crucial component of his student loan relief strategy, boasting nearly $160 billion forgiven for nearly 4.6 million borrowers under his administration.
“This institution manipulated data, misled students, and trapped borrowers in a cycle of debt with false promises of prosperous careers post-graduation,” Biden stated.
Eligible borrowers enrolled at these schools between January 2004 and October 2017 will start receiving notifications of relief beginning Wednesday.
As a former professor deeply committed to equitable education, I have become an active advocate for law and policy reforms to improve our education system. My expertise lies in developing legal frameworks that promote access to and the quality of education. Through my writings and public speaking, I strive to educate and involve communities, policymakers, and educators in the significance of legal reforms that foster fairness and innovation in educational practices. My contributions are instrumental in driving the conversation on how legal reforms can forge a more inclusive and enhanced educational landscape.