Biden Grants $6.1 Billion in Student Debt Forgiveness for Art Institute Students

At Extreme Investor Network, our focus is on helping individuals build wealth and achieve financial independence through smart investment strategies. In our latest blog post, we are discussing the recent announcement from the Biden administration regarding student debt forgiveness for former students of The Art Institutes.

The Biden administration has announced that it will forgive over $6.1 billion in student debt for 317,000 former students of The Art Institutes, a once giant chain of for-profit schools. This relief will benefit borrowers who attended any of the Art Institute campuses between January 1, 2004, and October 16, 2017.

The U.S. Department of Education, in collaboration with the attorneys general of Iowa, Massachusetts, and Pennsylvania, found that The Art Institutes and its parent company, the Education Management Corporation (EDMC), engaged in “pervasive and substantial” misrepresentations to prospective students about post-graduation employment rates, salaries, and career services.

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This announcement underscores the importance of protecting borrowers from predatory institutions and working towards a higher education system that is affordable for students and taxpayers. Eligible borrowers will receive the forgiveness automatically, regardless of whether they have applied for loan relief for defrauded borrowers.

It’s important to note that EDMC sold its remaining Art Institute campuses in October 2017, and all existing schools under separate ownership closed in September 2023. EDMC filed for bankruptcy in 2018, and Goldman Sachs, at one point, owned a significant portion of the company.

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