Biden Cancels $6.1B in Student Debt for 317,000, Cites Deceptive Practices

May 1, 2024, 02:33 PM

The Biden administration has announced the cancellation of $6.1 billion in student loan debt for 317,000 former students of the for-profit Art Institutes, a part of EDMC. This decision follows findings that the institutions engaged in deceptive practices, misleading students about their career prospects and potential earnings after graduation. The U.S. government identified these misrepresentations as 'pervasive and substantial'. Additionally, over 3,500 borrowers in Massachusetts, including attendees of the New England Institute of Art, will benefit from more than $80 million in federal student loan debt discharge due to similar predatory behaviors by these art colleges. President Biden stated, 'Today, my Administration is approving $6.1 billion in student debt cancellation for 317,000 borrowers who attended the Art Institutes.'