The Biden-Harris Administration approved more than $6.1 billion in automatic student loan relief to borrowers who enrolled at any Art Institute campus between Jan. 1, 2004, and Oct. 16, 2017.
“For more than a decade, hundreds of thousands of hopeful students borrowed billions to attend The Art Institutes and got little but lies in return,” said U.S. Secretary of Education Dr. Miguel A. Cardona.
Cardona said the U.S. Department of Education (ED) worked with the attorneys general offices of Iowa, Massachusetts, and Pennsylvania to redress wrongs for the nearly 317,000 Art Institute borrowers and protect others from predatory institutions.
Richard Cordray
The department independently reviewed evidence, provided by the state attorneys general offices, that included internal employment data, admissions training manuals, employment advertisements, internal records of graduate employment outcomes, and statements from former students and employees.
“The Art Institutes preyed on the hopes of students attempting to better their lives through education,” said Federal Student Aid Chief Operating Officer Richard Cordray. “We cannot replace the time stolen from these students, but we can lift the burden of their debt. We remain committed to working with our federal and state partners to protect borrowers.”
The group discharge will provide relief automatically to borrowers harmed by The Art Institutes’ actions, including borrowers who have not yet applied for borrower defense. The education department plans to notify eligible borrowers that they are approved for discharges and take steps to pause loans identified for discharge, so borrowers do not make further payments.
