The Biden administration announced on Wednesday its decision to cancel $6 billion in student loans for individuals who attended the Art Institutes, a chain of for-profit colleges that closed its last campus in 2023 amidst allegations of fraud. The Education Department cited the chain's use of deceptive practices to lure students, leading to a significant financial burden without promising career prospects.
President Joe Biden condemned the institution for falsifying data, misleading students, and burdening borrowers with substantial debt. The Education Department will automatically eliminate loans for 317,000 individuals who attended any Art Institute campus between January 1, 2004, and October 16, 2017.
