Education Department announces $6.1B in debt relief for Art Institutes students
May 1 (UPI) -- The Education Department on Wednesday announced student loan debt forgiveness for borrowers who attended The Art Institutes.
The department said it approved more than $6.1 billion in relief for nearly 317,000 borrowers who attended any Art Institutes campus from Jan. 1, 2004, through Oct. 16, 2017, after it found that the private for-profit art schools "made pervasive and substantial misrepresentation" in various areas, including salaries, postgraduate employment rates 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 lies in return," Education Secretary Miguel Cardona said. "We must continue to protect borrowers from predatory institutions and work toward a higher education system that is affordable to students and taxpayers."
The Education Department said the evidence against The Art Institutes was provided by a multi-year independent review by attorneys general offices in Iowa, Massachusetts and Pennsylvania.
"The Art Institutes preyed on the hopes of students attempting to better their lives through education," said Richard Cordray, the department's federal student aid chief operating officer. "We cannot replace the time stolen from these students, but we can lift the burden of their debt."
The Education Department said The Art Institutes and its parent company Education Management Corporation inflated post-graduate employment rates in advertisements, displayed inaccurate average salaries in post-graduation jobs and exaggerated its relationships with employers.
All of the Art Institutes campuses closed in September 2023 under new ownership.
President Joe Biden in a statement accused former President Donald Trump, of ignoring issues surrounding student borrowing.
"While my predecessor looked the other way when colleges defrauded students and borrowers, I promised to take this on directly to provide borrowers with the relief they need and deserve," Biden said.
"We will never stop fighting to deliver relief to borrowers, hold bad actors accountable, and bring the promise of college to more Americans."
With Wednesday's announcement, the Education Department said the Biden Administration has provided nearly $160 billion in student debt relief for approximately 4.6 million borrowers, including a series of actions taken after a more widespread plan was struck down by the U.S. Supreme Court last year.
