The Biden administration has announced the forgiveness of $6.1 billion in student debt for 317,000 individuals who attended The Art Institutes, a for-profit chain of schools.

This action comes as part of President Joe Biden's broader plan to address the nation's staggering $1.7 trillion student debt burden, CBS News reports.

The move follows the Supreme Court's rejection of the administration's previous proposal for widespread student loan forgiveness.

The Art Institutes, with campuses in various cities including Atlanta, Fort Worth, New York, and Tampa, ceased operations permanently in September due to allegations of fraud.

The Department of Education uncovered instances where the institution had misrepresented the employment rates and salaries of its graduates.

US Secretary of Education Miguel Cardona emphasized the need to shield borrowers from predatory practices and advocated for a more affordable higher education system.

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Historic Debt Relief

President Joe Biden stated that his administration has already forgiven $29 billion in debt for 1.6 million students who were victims of deceptive practices by their colleges or faced sudden closures.

This latest announcement brings the total debt forgiven by the administration to over $160 billion for nearly 4.6 million borrowers, encompassing a range of circumstances beyond The Art Institutes' case.

The Department of Education's investigation revealed that The Art Institutes had misled students regarding the success rates of their graduates and misrepresented employment partnerships designed to assist students in securing jobs.

False claims, such as 80% of graduates finding jobs in their fields of study, were debunked, with the true employment rate being significantly lower, according to AP News.

Additionally, the school inflated graduate salaries using fabricated data, including outliers like tennis star Serena Williams, who attended the Art Institute of Fort Lauderdale.

The closure of The Art Institutes in September affected 1,700 students following a $95.5 million settlement between the institution and federal regulators over fraud allegations.

Previous closures of Art Institute campuses occurred in 2019 and earlier, reflecting a troubled history for the chain.

Biden's Ongoing Efforts

The Biden administration has pursued debt relief through existing programs despite setbacks in broader initiatives for one-time forgiveness.

The administration continues to collaborate with state attorneys general, reviewing evidence and acting against schools engaged in fraudulent practices.

The Education Department will begin notifying borrowers eligible for loan forgiveness, with refunds for payments already made, Fox Business noted.

The Art Institutes, once a sprawling network of campuses across the country, faced financial turmoil and legal challenges before their final closure in 2021.

The administration remains committed to providing relief to borrowers and reforming the higher education system to ensure accessibility and accountability.

President Joe Biden reaffirmed his commitment to addressing student debt and making college education more accessible.

He highlighted initiatives such as increasing Pell Grants, reforming loan forgiveness programs, and pursuing plans to alleviate debt for millions of Americans.

The administration, in collaboration with state authorities, aims to hold accountable institutions that prey on students' aspirations for a better future.

Federal Student Aid Chief Operating Officer Richard Cordray echoed the administration's dedication to restoring trust in educational institutions and alleviating the burden of debt for affected borrowers.

The automatic application of relief underscores the administration's determination to provide tangible support to those impacted by deceptive practices in higher education.

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This article is owned by Latin Post.

Written by: Ross Key

WATCH: Biden cancels $6.1 billion in loans for ex-Art Institutes students - From CBS News