- ORIGINAL NEWS
Biden administration forgives $6.1 billion in student debt for 317,000 former Art Institute students
- SUMMARY
Following an investigation revealing widespread deception, the Biden administration has announced a monumental $6.1 billion student loan forgiveness for 317,000 former students of The Art Institutes.
The Education Department concluded that the for-profit school chain, owned by Education Management Corporation (EDMC), relentlessly misrepresented critical information to prospective students.
These misrepresentations centered primarily around post-graduation employment prospects, salaries, and career services.
The department found that Art Institutes inflated graduation employment rates and salaries to entice students.
One former employee even admitted to using tennis star Serena Williams’ income to skew statistics and boost earning potential claims.
The automatic loan forgiveness applies to eligible borrowers who attended any Art Institute campus between 2004 and 2017, regardless of whether they pursued official loan relief for defrauded borrowers.
This move by the Biden administration highlights its commitment to protect students from predatory institutions and promote an affordable and accessible higher education system.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“The Biden administration 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.”
Negative
“The U.S. Department of Education 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.”