Biden Announces Six Billion Dollars in Student Debt Forgiveness for Attendees of Art Institutes

Biden Announces $6 Billion in Student Debt Forgiveness for Art Institutes Attendees

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.

Scroll to Top