U.S. Department of Education Discharges Student Loans for Victims of Alleged Art Institutes Deceit

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  • Massachusetts AG Andrew Joy Campbell, Pennsylvania AG Michelle Henry, Iowa AG Brenna Bird, and the U.S. Department of Education (DOE) announced that the 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.
  • The 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 the DOE, borrowers will not have to make payments on the loans being discharged, and payments made to the DOE on federal student loans will be refunded.
  • We have previously reported on the DOE’s discharge of student loans for students of online for-profit school Ashford University.
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