Student borrowers and advocates rally for the People’s March for Student Debt Relief during the Supreme Court Hearing on Student Debt Relief on February 28, 2023 in Washington, DC.
Countess Jemal/Getty Images for the people’s protest
hide caption
caption conversion
Countess Jemal/Getty Images for the people’s protest
Student borrowers and advocates rally for the People’s March for Student Debt Relief during the Supreme Court Hearing on Student Debt Relief on February 28, 2023 in Washington, DC.
Countess Jemal/Getty Images for the people’s protest
President Biden announced on Wednesday that the White House will forgive more than $6.1 billion in student loan debt owed by 317,000 people who attended The Art Institutes, a private art school system in the US that closed last year.
“This organization falsified data, intentionally misled students, and tricked borrowers into taking on mountains of debt without promising career prospects when they finished,” Biden said in a statement. learning process”.
“We will never stop fighting to provide relief to borrowers, hold bad actors accountable, and deliver the promise of higher education to more Americans,” the president added.
The relief will apply to students enrolled in the school system between January 1, 2004 and October 16, 2017, during which time the U.S. Department of Education discovered that the Art Institute had out “substantial and widespread misinformation to prospective students about post-graduation employment rates, salaries and career services during that time,” according to one declare from DOE.
DOE will immediately begin notifying borrowers eligible for forgiveness, including those who have not yet formally applied for borrower protection. Previous payments on student loans will also be refunded. The average total amount available comes to about $19,000 per borrower.
This latest round Student loan forgiveness bringing the total amount approved by the Biden Administration to nearly $160 billion for nearly 4.6 million borrowers, an average of nearly $35,000 per student.
