Biden Clears $6 Billion in Debt for Closed Art School's Students
Source: Bloomberg
May 1, 2024 at 6:00 AM EDT
President Joe Biden is forgiving $6.1 billion in student loans for more than 300,000 attendees of the Art Institutes, a shuttered group of private colleges accused of fraud — the latest effort to deliver on his promise of easing student-loan debt ahead of November’s election.
The Art Institutes once operated 50 campuses across the US, but its doors closed abruptly in September 2023. The move will provide automatic relief for 317,0000 people who enrolled in the colleges between Jan. 1, 2004 and Oct. 16, 2017.
The Education Department said the schools and parent company Education Management Corp. “made pervasive and substantial misrepresentations to prospective students about postgraduation employment rates, salaries, and career services during that time.” Education Management Corp. sold the entity in 2017.
Biden’s action will automatically provide relief — even for those who have not yet applied for assistance. Forgiveness notices will be sent on Wednesday.
Read more: https://www.bloomberg.com/news/articles/2024-05-01/student-loan-forgiveness-biden-clears-6b-for-art-institutes-attendees
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Link to White House STATEMENT - Statement from President Joe Biden on $6.1 Billion in Student Debt Cancellation for 317,000 Borrowers who Attended the Art Institutes
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