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Is there a lawsuit against the Art Institute? Yes, there was a lawsuit against the Education Management Corporation, which operated the Art Institute campuses. The federal Department of Justice and four states initiated this lawsuit, seeking multibillion-dollar damages. That case has been settled.
On May 1, 2024, the Biden-Harris administration announced the automatic $6.1 billion in Art Institutes student loan forgiveness for students with federal loans who attended the schools between January 1, 2004 and October 16, 2017. Private student loans are not eligible for this federal forgiveness or discharge.
Hundreds of students and faculty members were left stunned on Friday by the news that the Art Institutes, a system of for-profit colleges, would close its eight remaining campuses across the United States by the end of this month. The system had suffered from low enrollment since the coronavirus pandemic began.
The US Department of Education (ED) has determined that the federal student loan(s) you received to attend The Art Institute on or after Jan. 1, 2004, and on or before Oct. 16, 2017, are eligible for a full discharge. This means the remaining balance on the eligible loan(s) will be forgiven.
If you default on a federal student loan, the government can take your tax refund to help cover what you owe.
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You may be eligible for a college refund check if your financial aid amount was more than the actual cost of your tuition, room and board, and other fees. The check may be mailed to you or deposited directly in your bank account, or the amount may be credited to your college account for future school costs.
The U.S. Department of Education (ED) announced that borrowers who enrolled at The Art Institutes between Jan. 1, 2004, and Oct. 16, 2017, will receive 100% discharges of their eligible federal student loans. Nearly 317,000 borrowers will have more than $6.1 billion in loans discharged automatically.

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