The Biden administration announced on Wednesday the approval of canceling over $6.1 billion in student loan debt held by 317,000 borrowers who previously attended The Art Institutes, a network of for-profit colleges that are now defunct. This decision comes after the Department of Education found that the schools had misled prospective students about job placement rates and average salaries of graduates.
Utilizing its authority under the borrower defense to repayment program, the administration is providing debt relief to borrowers who have been defrauded by their colleges. President Joe Biden emphasized the administration's commitment to addressing student loan issues, contrasting it with the previous administration's approach.
