Back / Biden Administration Announces $6.1 Billion Student Loan Relief for Art Institute Students

Biden Administration Announces $6.1 Billion Student Loan Relief for Art Institute Students

Melanie Meths A.|Loan Updates|May 09, 2024
Biden Administration Announces $6.1 Billion Student Loan Relief for Art Institute Students

Last week, the Biden-Harris Administration made a significant announcement, approving over $6.1 billion in automatic student loan relief for nearly 317,000 borrowers who attended Art Institute campuses between Jan. 1, 2004, and Oct. 16, 2017. This decision comes after investigations revealed serious misrepresentations by The Art Institutes and its parent company, Education Management Corporation (EDMC), regarding post-graduation employment rates, salaries, and career services.

The U.S. Department of Education (Department) independently reviewed evidence from the attorneys general offices of Iowa, Massachusetts, and Pennsylvania, which conducted extensive investigations into The Art Institutes and EDMC. These investigations uncovered inflated employment rates, exaggerated salary figures, and misrepresented relationships with employers and post-graduation career services.

Key Findings:

  • The Art Institutes falsely advertised over 80 percent of graduates obtaining employment related to their fields of study within six months of graduation. However, the school's own records showed inflated employment rates through various manipulations.
  • Advertisements also displayed inaccurate average salaries for graduates, with testimony revealing fabrication and manipulation of data, including the inclusion of high-earning outliers to skew statistics.
  • The school misrepresented its partnerships with employers and the availability of post-graduation career services.

The Department will automatically discharge loans for affected borrowers, ensuring refunds for payments made and adjustments to remaining balances. This move underscores the Administration's commitment to providing relief to student borrowers affected by predatory practices.

Looking ahead, borrowers do not need to take any action as the Department will notify eligible borrowers and pause loan payments during the discharge process. Borrowers seeking further information can visit

This announcement marks another step in the Administration's efforts to address student loan relief, totaling nearly $160 billion for approximately 4.6 million borrowers. This includes relief through Income-Driven Repayment (IDR) improvements, fixes to Public Service Loan Forgiveness (PSLF), assistance for borrowers on the SAVE Plan, and relief for borrowers affected by school closures or disabilities.

The Biden-Harris Administration remains steadfast in its commitment to delivering the relief that student borrowers and their families rightfully deserve.

If you need personalized assistance or have questions about your specific situation, our experts at LoanSense are here to help. Visit our website at to learn more about our services and get in touch. You may also check out our YouTube Channel for more informative discussions and topics related to student loan debt.

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