Former students of the for-profit Art Institutes are approved for $6 billion in loan cancellation

The Biden administration says it will cancel $6 billion in student loans for people who attended the Art Institutes, a system of for-profit colleges that closed the last of its campuses in 2023 amid accusations of fraud. The Education Department says the Art Institutes chain lured students with “pervasive” lies. The department says it's invoking its power to cancel student loans for borrowers who were misled by their colleges. The department said Wednesday it'll automatically erase loans for 317,000 people who attended any Art Institute campus between Jan. 1, 2004, and Oct. 16, 2017. The Education Department says it’s taking action after reviewing evidence from the attorneys general of Massachusetts, Iowa and Pennsylvania.