Education Dept Discharges Student Loans for Victims of Alleged Art Institutes Deceit

  • Massachusetts AG Andrew Joy Campbell, Pennsylvania AG Michelle Henry, Iowa AG Brenna Bird, and the U.S. Department of Education (DOE) announced that DOE approved $6.1 billion in automatic student loan relief for nearly 317,000 students of for-profit Art Institutes schools, which allegedly made substantial misrepresentations to students.
  • DOE’s approval was based on a review of evidence provided by the AGs who had conducted their own multi-year investigations into, and brought lawsuits against, the Art Institutes.
  • According to DOE, borrowers will not have to make payments on the loans being discharged, and payments made to DOE on federal student loans will be refunded.
  • We have previously reported on DOE’s discharge of student loans for students of online for-profit school Ashford University.