Biden Administration Forgives $6.1B in Loans to Former Art Institute Students

$6.1 billion in student loan debt to nearly 317,000 borrowers who enrolled at the Art Institute between 2004 and 2017 as it has been determined that the school made “pervasive and substantial misrepresentations” about career prospects.

The school would settle lawsuits and close 19 locations as enrollment dipped. The school was sold to the Dream Center Foundation, a Los Angeles-based Pentecostal organization, in 2017. Multiple campuses lost accreditation with the Higher Learning Commission in 2018 but the school did not inform students, despite being required to, for six months. 23 more campuses were closed.

But students who took out loans to attend the Art Institutes were, up until this week, still on the hook for any loans they took out to attend the defunct school. “For more than a decade, hundreds of thousands of hopeful students borrowed billions to attend The Art Institutes and got little but lies in return. That ends today—thanks to the Biden-Harris Administration’s work with the attorneys general offices of Iowa, Massachusetts, and Pennsylvania,” U.S. Secretary of Education Miguel Cardona says. “We must continue to protect borrowers from predatory institutions—and work toward a higher education system that is affordable to students and taxpayers.

Source: Education Headlines (educationheadlines.net)

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