Students who attended Art Institute campuses from 2004 to 2017 are having their student loans forgiven because the institution misled students on several key issues, from graduation rates to graduate earnings. The U.S. Department of Education reported it would forgive $6.1 billion in loans to former Art Institute students through the borrower defense to repayment program.

The Art Institute chain and its former parent company, Education Management Corporation, are prime examples of for-profit colleges and universities whose primary goal is making money—which can lead to less than positive experiences for their students. Outright fraudulent behavior is at the extreme negative end, and because for-profit colleges are protecting their own financial interests above all, students may experience various other problems, such as disqualification for minor infractions and a lack of due process in disciplinary proceedings.

If you are experiencing issues with a for-profit college, you don't have to fight them alone. Regardless of your specific problem, your best option is to call the experienced, knowledgeable Lento Law Firm Education Law Team now at 888.535.3686 or contact us online. We know education law, and we can help ensure that your best interests and rights are protected.

Art Institutes Debt Relief

The Department of Education found that the Art Institutes, which closed down for good in October 2023 after being sold to a non-profit company in 2017 and converted to non-profit institutions, “inflated graduate employment rates, exaggerated its relationships with employers, and skews or falsified the earnings data of graduates.” Specifically, a former employee claimed that the Art Institute included the income of former student, professional tennis player Serena Williams, to skew graduate income data.

Individuals entitled to debt relief include those who were enrolled before the 2017 sale. Overall, about 317,000 are entitled to the borrower defense discharge, which gives students who were defrauded or misled by their college or university the right to seek relief.

Further For-Profit College Problems

For-profit colleges continue to experience a steady decline since the height of their presence in 2012-13. Compared to then, the number of for-profit institutions where students are eligible to receive aid has dropped by nearly 40%. North Coast College in Ohio and Mountain State College in West Virginia are among the latest to shutter their doors, largely in part to dwindling enrollment.

Just like their non-profit counterparts, for-profit colleges provide the opportunity for students to pursue a degree. Because for-profit colleges are driven by profit motives and pleasing stakeholders, they also tend to cost more, which leads to increasing student loan debt. Paying off this debt can become an impossible feat for some students.

Advocating for For-Profit College Students

If you need help with an issue concerning a for-profit college, let the Education Law Team at the Lento Law Firm advocate for you. Find out more about what our dedicated attorneys can do to help your situation by contacting us online today or calling us at 888.535.3686.