Student Loan Forgiveness Eligibility: 317,000 individuals who attended The Art Institutes have had their student loans forgiven by the Biden administration by $6.1 billion.
As a result of accusations of fraud, this for-profit chain of schools closed down last fall, leaving many students in debt and feeling betrayed.
A staggering $1.7 trillion in student debt is being addressed by President Biden’s administration.
Earlier this year, the Supreme Court blocked a broader college loan forgiveness initiative as part of that plan.
Following an investigation by the Department of Education, The Art Institutes, which had branches in Atlanta, Fort Worth, New York, and Tampa, closed permanently in September.
The Education Secretary, Miguel Cardona, expressed outrage, stating that students who took out loans to attend these schools “got little but lies in return.”
“We must continue to protect borrowers from predatory institutions – and work toward a higher education system that is affordable to students and taxpayers,” Cardona emphasized.
It was falsely claimed that art institutes placed 80% of their graduates in jobs
President Biden mentioned in his remarks that his administration has now forgiven $29 billion in debt for 1.6 million students who had their colleges take advantage of them, experienced abrupt closures, or were the subject of related court settlements.
The Biden administration has already forgiven nearly 4.6 million borrowers over $160 billion.
The administration’s commitment to providing student debt relief is evident in this ongoing effort.
The Art Institutes’ investigation revealed alarming findings, including that 80% of its graduates found jobs in their fields of study within six months of graduation.
Additionally, the school allegedly misrepresented its graduates’ earnings and annualized the estimated incomes of temporary workers.
Also Read: PSLF Program Deadline Approaching: Apply by 2024 to Get Student Loans Forgiven
