Biden Administration Cancels $6.1 Billion in Student Debt for 317,000 Amid Fraud Claims

The Biden administration has announced the forgiveness of $6.1 billion in student debt for 317,000 former students of The Art Institutes, following the chain’s closure last fall amid fraud allegations. This move is part of President Biden’s broader strategy to address the nation’s $1.7 trillion student debt, especially after broader relief efforts were hindered by the Supreme Court last year. The Art Institutes were accused of misrepresenting employment rates and salary data, leaving many graduates with significant debt and few tangible benefits, according to U.S. Secretary of Education Miguel Cardona.