The Biden administration announced Wednesday it would be forgiving $6 billion in student debt for borrowers who attended the Art Institutes.
The 317,000 borrowers will receive the relief after it was discovered the school “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.”
The relief comes through the Borrower Defense program that allows those defrauded by their schools to receive loan cancellation.
Among the infractions against the Art Institutes include falsely advertising that 80 percent of graduates found employment in their field within six months of graduation. The advertisements also included inflated salary data from graduates of the school.
In the announcement, Biden directly went after Trump, saying, “While my predecessor looked the other way when colleges defrauded students and borrowers, I promised to take this on directly to provide borrowers with the relief they need and deserve.”
I have been paying on a student loan for 12 years. I have 5k left to go. It sucks. I have sacrificed at times, especially when I was younger. But just because it sucks for me doesn’t mean it should suck for everyone else.
@G0vernanceJoshSocialist2wks2W
Then propose a fiscally tenable system to reduce college/university costs going forward. This isn't that at all...
@ThriftyBitternNo Labels2wks2W
I've said this before, but the government shouldn't be in the loan guaranteeing business. This creates so much moral hazard. People who aren't in a financial position to repay the loans (for whatever reason) take on huge amounts of debt.
@DynamicM0derateUnity2wks2W
Excellent point. And since the colleges know the Govt is the guarantor, they are free to hike costs up to absurd levels.
All of us who either never took out loans or paid back our own student loan debts are now paying the debts of people who took out loans to get art degrees?!
@TautRoadrunnerPatriot2wks2W
Even better. Active military and veterans who serve or served to earn benefits get to chip in as well. And they wonder why recruiting is down 25% plus.
This bubble should have popped decades ago, but government only tries to control it more. First, they took away college loan competition. Then college figured out is all free money
@Freedom762wks2W
Biden can’t “cancel” debts — all he can do is change who has to pay them. Instead of the people who were actually stupid enough to fall for what is normally a scam accepting responsibility for their lives, mature Americans struggling to pay off mortgages, house and credit card debts, and buy food for their families will be plundered in order to fund a Gender Studies major at Columbia. It is not just unconstitutional, it is EVIL.
@JellyfishAudreyPatriot2wks2W
Once again, in defiance of the Constitution's separation of powers and a Supreme Court ruling, Biden is tapping into the federal Treasury and using your tax dollars to forgive student debt for the sole purpose of buying votes.
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
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