Biden Forgives Another $6 Billion in Student Loans

Biden Forgives Another $6 Billion in Student Loans

Shannon Fagan

The Biden administration on Wednesday announced it would erase roughly $6.1 billion in additional student loan debt. The latest round of debt forgiveness is specifically for 317,000 borrowers who attended The Art Institutes, a private school group that closed last year amid allegations of fraud.

"This institution falsified data, knowingly misled students, and cheated borrowers into taking on mountains of debt without leading to promising career prospects at the end of their studies," President Joe Biden said in a statement.

The forgiveness applies to students who were enrolled between 2004 and 2017, when, according to the Department of Education, the school made "pervasive and substantial misrepresentations to prospective students about postgraduation employment rates, salaries, and career services."

The Biden administration has now forgiven nearly $160 billion in student loan debt, involving about 4.6 million borrowers.