In a significant move, the Biden administration has announced an additional $6.1 billion in student loan cancellation, specifically aimed at borrowers who attended the Art Institutes. President Biden characterized the institution’s practices as “predatory,” emphasizing the need to assist students who were victims of deceptive actions.
Targeted Relief for Art Institute Borrowers
The administration’s decision comes as part of its broader efforts to address the challenges faced by borrowers burdened with student debt. With this latest announcement, the total amount of student loans forgiven under the Biden administration reaches $160 billion, benefiting nearly 4.6 million borrowers. President Biden highlighted the administration’s commitment to rectifying the injustices perpetuated by certain educational institutions, stating that over the past three years, nearly $29 billion in debt relief has been approved for 1.6 million borrowers. He underscored the administration’s focus on fixing broken student loan programs and making higher education more accessible.
Commitment to Accountability and Affordability
Education Secretary Miguel Cardona echoed President Biden’s sentiments, emphasizing the need to hold predatory institutions accountable for their actions. The Biden administration is collaborating with state attorneys general offices, including those of Iowa, Massachusetts, and Pennsylvania, to pursue legal action against schools that engaged in deceptive practices. Cardona emphasized the administration’s dedication to protecting borrowers from predatory institutions and creating a higher education system that is affordable for students and taxpayers alike. The partnership with state attorneys general reflects a coordinated effort to ensure that students are not misled or exploited by educational institutions.
Measures to Address Student Debt Crisis
The announcement reaffirms President Biden’s commitment to delivering relief to borrowers and expanding access to affordable higher education. The administration has implemented various measures to address the student debt crisis, including increasing the maximum Pell Grant, reforming Public Service Loan Forgiveness and Income-Driven Repayment programs, and introducing the SAVE Plan—an affordable repayment option.
President Biden reiterated his administration’s determination to continue fighting for borrowers’ rights and holding accountable those institutions that engage in deceptive practices. By pursuing legal action against predatory schools and implementing policies to make college more affordable, the administration aims to fulfill the promise of higher education for millions of Americans.
The Biden administration’s announcement of $6 billion in student loan relief represents a significant step towards addressing predatory practices within the education sector. By providing targeted assistance to borrowers who attended the Art Institutes and partnering with state authorities to pursue legal action, the administration is working to ensure that students are protected and empowered to pursue their educational goals without undue financial burden.