The Biden-Harris Administration has announced the cancellation of $6.1 billion in student loan debt for 317,000 former Art Institute students.

The Education Department's decision comes after findings that the for-profit college system, which closed in 2017, misled students about job placement and salary prospects.

Borrowers who attended any Art Institute campus between 2004 and 2017 will have their loans automatically erased.

The loan discharge targets students enrolled while under the ownership of Education Management Corp., which owned about 50 Art Institute schools before going bankrupt.

The Art Institutes are accused of exaggerating employer relationships, inflating job and salary figures, and failing to provide adequate career services to graduates.

Education Secretary Miguel Cardona highlights the initiative's aim to make higher education more affordable and to protect students from deceptive educational institutions.

The Department of Education will proactively provide relief to affected borrowers and will notify, pause, and refund payments on eligible loans.