Biden Cancels Student Loans from The Art Institute
Students who attended The Art Institute, which will permanently shut its doors this September, will have their student loans canceled. The student loan cancellation will affect 317,000 eligible borrowers and cancel more than $6.1 billion in student loan debt.
Key Points:
- The Biden-Harris Administration has announced that student loans with The Art Institute will be canceled.
- Lawsuits filed by multiple state Attorneys Generals resulted in findings of fraud on employment statistics, salaries, and connections to prospective employers.
President Biden Announces Student Loan Cancellation for Students of The Arts Institute
President Biden stated in a White House press release, “Today, my Administration is approving $6.1 billion in student debt cancellation for 317,000 borrowers who attended the Arts Institute. This institution falsified data, knowingly misled students, and cheated borrowers into taking on mountains of debt without leading to promising career prospects at the end of their studies.”
Attorney General Lawsuits Against the Art Institutes
Lawsuits were filed by the Attorneys General Offices of Pennsylvania, Massachusetts, and Iowa against The Art Institute and its parent company, Education Management Corporation (EDMC).
Findings include that they engaged in substantial misrepresentations related to employment rates, salaries, and career services.Their advertised employment rates exceeding eighty percent when it was closer to fifty-seven percent.
The Art Institutes advertised the employment rate via their website, brochures, and campus tours. Internal data was also said to be falsified to make it seem more graduates were working in their field when they were not.
This included inaccurate salaries of their students upon graduation as well as employment connections through partnerships with prospective employers.
Qualifying for Student Loan Cancellation
Students enrolled in any of the Art Institute’s campuses between January 1, 2004, and October 16, 2017, will have their student loans canceled.
How the Student Loan Cancellation with The Art Institute Works
According to several press releases by the U.S. Department of Education and Executive Summaries, eligible borrowers are not required to take any steps to request that their student loans with The Art Institutes be canceled.
This also applies to borrowers who have yet to apply under the borrower’s defense. Eligible borrowers should be receiving emails confirming that their student loans were canceled.
The full press release can be accessed via this link: Statement from President Joe Biden on $6.1 Billion in Student Debt Cancellation for 317,000 Borrowers who Attended the Art Institutes.
Did you attend The Arts Institute and had your student loans canceled? Then feel free to e-mail me at alex@bankruptcy.blog so I can post your experience in the Reader’s Questions Forum.
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