Debt relief will be granted to students who attended any campus affiliated with The Art Institutes, as announced by the White House. President Joe Biden plans to forgive approximately $6.1 billion in student debt for over 300,000 former students of The Art Institutes. This relief will apply to borrowers who were enrolled at any of The Art Institutes campuses between Jan. 1, 2004, and Oct. 16, 2017.
The decision to provide this debt relief stems from the administration’s use of the borrower defense to repayment program, through which the loans will be wiped out due to allegations of fraud by the college. The relief will be automatically applied to the students, regardless of whether they have previously applied for borrower defense.
The Department of Education conducted a review of the for-profit college network, which included The Art Institutes, following lawsuits filed by the attorney general offices of Iowa, Massachusetts, and Pennsylvania. It was found that the institute and its parent company had engaged in deceptive practices, including falsifying data, misleading students, and providing inaccurate information about postgraduation employment rates and salaries.
President Biden criticized his predecessor, Donald Trump, for failing to address fraudulent practices in colleges and emphasized his commitment to protecting borrowers and ensuring access to higher education. The announcement of this debt relief is part of Biden’s efforts to address issues within the student loan system and provide relief to borrowers who have been deceived by educational institutions.
This latest debt relief initiative is one of the largest group discharges made under the borrower defense program and follows previous efforts to cancel student loan debt for borrowers who were victims of fraud by other educational institutions. Despite concerns from some lawmakers about the economic implications of these debt relief programs, President Biden remains steadfast in his commitment to delivering relief to borrowers and holding accountable those who engage in fraudulent practices in the higher education sector. Please rewrite this sentence.
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