Biden forgives $6.1 billion in student debt for Art Institute students

Pelican Press · May 1, 2024

Biden forgives $6.1 billion in student debt for Art Institute students

A general view of the atmosphere during The Art Institute of Atlanta commencement ceremony at Riverside EpiCenter on June 17, 2022 in Austell, Georgia.

Marcus Ingram | Getty Images

The Biden administration on Wednesday announced that it would forgive more than $6.1 billion in student debt for 317,000 former students of The Art Institutes, the once giant chain of for-profit schools.

The relief will go to borrowers who enrolled at any of the dozens of Art Institute campuses across the country between Jan. 1, 2004 and Oct. 16, 2017.

The U.S. Department of Education, which reviewed evidence provided by the attorneys general of Iowa, Massachusetts and Pennsylvania, concluded that the schools and its parent company, the Education Management Corporation, or EDMC, made “pervasive and substantial” misrepresentations to prospective students about post-graduation employment rates, salaries and career services.

“For more than a decade, hundreds of thousands of hopeful students borrowed billions to attend The Art Institutes and got little but ***** in return,” U.S. Secretary of Education Miguel Cardona said in a statement.

“We must continue to protect borrowers from predatory institutions — and work toward a higher education system that is affordable to students and taxpayers,” Cardona added.

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The Education Dept. said The Art Institutes falsified average salaries among graduates, among other abuses.

“For example, according to a former employee, one Art Institute campus included professional tennis player Serena Williams’ annual income to ‘skew the statistics and overinflate potential program salaries,'” the department said.

Eligible borrowers will get the forgiveness automatically, whether or not they went through