hear that whistle blow
May 1, 2024 4:26 PM Subscribe
Biden administration forgives $6.1 billion in student debt for 317,000 former Art Institute students
The decision covers people who were enrolled at any Art Institute campus from Jan. 1, 2004, to Oct. 16, 2017, a period in which Education Management Corp. (EDMC) owned the chain of schools. Today, the Education Department will begin notifying eligible borrowers, who are not required to take action. The agency said it also will refund payments that former students have made on loans that are earmarked for forgiveness. (CNBC)
"The Art Institutes launched in 1970 when the Education Management Corporation purchased the Art Institute of Pittsburgh. The system continued to grow in the ensuing years, largely through additional acquisitions. In 2001, the Art Institutes owned 20 campuses; by 2012, there were 50." (Artnet) After much legal wrangling, the eight remaining schools permanently closed on September 30, 2023. Some 1,700 students were given a week's notice of the closures.
"Over the last three years, my Administration has approved nearly $29 billion in debt relief for 1.6 million borrowers whose colleges took advantage of them, closed abruptly, or were covered by related court settlements, compared to just 53,500 borrowers who had ever gotten their debt cancelled through these types of actions before I took office. And in total, we have approved debt cancellation for nearly 4.6 million Americans through various actions." - Whitehouse.gov statement.
2015: EDMC to Pay $95.5 Million to Settle Claims of Illegal Recruiting, Consumer Fraud and Other Violations
2011: U.S. Files Complaint Against Education Management Corp. Alleging False Claims Act Violations
2010: A whistleblower alleged EDMC paid recruiters illegal bonuses to lure students to its schools through fraudulent means, and paid recruiters to falsify job placement data to entice students to choose EDMC colleges. Jason Sobek, the former recruiter for EDMC’s South University who filed the lawsuit, also alleged that EDMC deliberately targeted students who were vulnerable and unlikely to succeed in college, including students who were mentally ill or homeless. Sobek claimed that EDMC trained and encouraged its recruiters to prey on these vulnerable students.
2007: The initial qui tam False Claims Act lawsuit against EMDC was filed by whistleblower Lynntoya Washington (formerly an assistant director of admissions at the Art Institute of Pittsburgh Online Division) — who later filed an amended complaint, jointly with Michael T. Mahoney (formerly director of training for director of training for Education Management’s online higher education division).
Last week, the DOJ announced a new whistleblower initiative, the Criminal Division’s Voluntary Self-Disclosures Pilot Program for Individuals, to combat corporate crime:
The decision covers people who were enrolled at any Art Institute campus from Jan. 1, 2004, to Oct. 16, 2017, a period in which Education Management Corp. (EDMC) owned the chain of schools. Today, the Education Department will begin notifying eligible borrowers, who are not required to take action. The agency said it also will refund payments that former students have made on loans that are earmarked for forgiveness. (CNBC)
"The Art Institutes launched in 1970 when the Education Management Corporation purchased the Art Institute of Pittsburgh. The system continued to grow in the ensuing years, largely through additional acquisitions. In 2001, the Art Institutes owned 20 campuses; by 2012, there were 50." (Artnet) After much legal wrangling, the eight remaining schools permanently closed on September 30, 2023. Some 1,700 students were given a week's notice of the closures.
"Over the last three years, my Administration has approved nearly $29 billion in debt relief for 1.6 million borrowers whose colleges took advantage of them, closed abruptly, or were covered by related court settlements, compared to just 53,500 borrowers who had ever gotten their debt cancelled through these types of actions before I took office. And in total, we have approved debt cancellation for nearly 4.6 million Americans through various actions." - Whitehouse.gov statement.
2015: EDMC to Pay $95.5 Million to Settle Claims of Illegal Recruiting, Consumer Fraud and Other Violations
2011: U.S. Files Complaint Against Education Management Corp. Alleging False Claims Act Violations
2010: A whistleblower alleged EDMC paid recruiters illegal bonuses to lure students to its schools through fraudulent means, and paid recruiters to falsify job placement data to entice students to choose EDMC colleges. Jason Sobek, the former recruiter for EDMC’s South University who filed the lawsuit, also alleged that EDMC deliberately targeted students who were vulnerable and unlikely to succeed in college, including students who were mentally ill or homeless. Sobek claimed that EDMC trained and encouraged its recruiters to prey on these vulnerable students.
2007: The initial qui tam False Claims Act lawsuit against EMDC was filed by whistleblower Lynntoya Washington (formerly an assistant director of admissions at the Art Institute of Pittsburgh Online Division) — who later filed an amended complaint, jointly with Michael T. Mahoney (formerly director of training for director of training for Education Management’s online higher education division).
Last week, the DOJ announced a new whistleblower initiative, the Criminal Division’s Voluntary Self-Disclosures Pilot Program for Individuals, to combat corporate crime:
Sometimes, the best evidence of corporate wrongdoing involves a company insider. Our experience shows that individuals who are involved in criminal conduct and are willing to accept responsibility and cooperate with us are critical sources of information. [...] Under this pilot program, individuals with criminal exposure—not including CEOs, CFOs, high-level foreign officials, domestic officials at any level, or individuals who organized or led the criminal scheme—who come forward and report misconduct that was otherwise unknown to the department will be eligible to receive a non-prosecution agreement (NPA) if they meet certain criteria.A few previouslies on U.S. education debt, for-profit colleges, and student-loan forgiveness.
NPAs have been a part of the federal criminal system for decades, and prosecutors have long exercised discretion to offer NPAs as an essential tool to get culpable individuals in the door. Our new individual self-disclosure pilot program, which provides clear guidelines and threshold criteria, builds on the department’s longstanding practice to advance our fight against complex corporate crime. At bottom, making NPAs available to individuals who come forward to report corporate crime and cooperate allows us to prosecute more culpable individuals and to hold companies to account.
Under the new program, culpable individuals will receive an NPA if they (1) voluntarily, (2) truthfully, and (3) completely self-disclose original information regarding misconduct that was unknown to the department in certain high-priority enforcement areas, (4) fully cooperate and are able to provide substantial assistance against those equally or more culpable, and (5) forfeit any ill-gotten gains and compensate victims. The pilot program is designed to provide predictability and certainty by offering a pathway for culpable individuals to receive an NPA for truthful and complete self-disclosure to the department.
Student loan forgiveness is an absolute good. Kudos to this president.
posted by MiraK at 6:14 PM on May 1 [18 favorites]
posted by MiraK at 6:14 PM on May 1 [18 favorites]
I... don't think it's wrong to recruit students who are experiencing homelessness or who suffer from mental illness, but are otherwise competent.
I DO think it's wrong that the institutions doing this, at least the most visibly and effectively, were primarily for-profit colleges.
Art Institute was wrong for being motivated by profit, misleading people about their chances of their degree preparing them for a middle class life, and not doing enough to ensure students achieved academic success.
They weren't wrong for removing barriers for these students to enroll, for giving them hope for the future, or for welcoming them with open arms.
posted by Gable Oak at 6:15 PM on May 1 [3 favorites]
I DO think it's wrong that the institutions doing this, at least the most visibly and effectively, were primarily for-profit colleges.
Art Institute was wrong for being motivated by profit, misleading people about their chances of their degree preparing them for a middle class life, and not doing enough to ensure students achieved academic success.
They weren't wrong for removing barriers for these students to enroll, for giving them hope for the future, or for welcoming them with open arms.
posted by Gable Oak at 6:15 PM on May 1 [3 favorites]
EMDC recruiters focused on low-income (which included unhoused people) prospects solely to increase enrollment, to increase gov't funding to the company.
The lawsuit alleged that EMDC received $2.2 billion in federal financial aid in 2010 alone, which made up nearly 90% of its revenue.
By 2020, Goldman Sachs owned 41% of EMDC. (Goldman Sachs was familiar with the business model.)
posted by Iris Gambol at 7:04 PM on May 1 [6 favorites]
The lawsuit alleged that EMDC received $2.2 billion in federal financial aid in 2010 alone, which made up nearly 90% of its revenue.
By 2020, Goldman Sachs owned 41% of EMDC. (Goldman Sachs was familiar with the business model.)
posted by Iris Gambol at 7:04 PM on May 1 [6 favorites]
Nearly $20 billion of the student debt elimination in these last three years was courtesy of a statute called borrower defense to repayment, which lets the Department of Education cancel federal student loans when colleges violate students’ rights and state law. (Washington Post, May 1, 2024, archived link.) For-profit schools found in violation of the statute include: Ashford University, University of Phoenix, CollegeAmerica Colorado Campuses, Westwood College, Kaplan Career Institutes, Corinthian Colleges, the criminal justice programs at Minnesota School of Business and Globe University, Marinello Schools of Beauty, DeVry University, and ITT Technical; more information here.
posted by Iris Gambol at 8:02 PM on May 1 [11 favorites]
posted by Iris Gambol at 8:02 PM on May 1 [11 favorites]
The last president who was maybe even plausibly to Biden's left was FDR, but that far back and comparisons become difficult
posted by vibratory manner of working at 9:48 PM on May 1 [8 favorites]
posted by vibratory manner of working at 9:48 PM on May 1 [8 favorites]
I've stayed away from the Gaza threads because I'm tired of having the same circular arguments with the same dozen people. Don't come picking a fight with me, don't put words in my mouth, and don't come at me or others with mudslinging names just because I disagree with you.
30 Things Joe Biden Did as President You Might Have Missed
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30 Things Joe Biden Did as President You Might Have Missed
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Allow others to express themselvesposted by The Pluto Gangsta at 10:01 PM on May 1 [21 favorites]
Speak for yourself, not others
Be considerate and respectful
I am happy for my fellow alums for whom this is a great relief. As a student who withdrew while struggling with an illness, who then paid off his student loans with the help of federal disability funds, I feel like I was sort of ahead of the times \o/!
posted by InspiredChaos at 10:02 PM on May 1 [4 favorites]
posted by InspiredChaos at 10:02 PM on May 1 [4 favorites]
Mod note: Couple deleted. Let's stay on topic and let's not fight please, thank you.
posted by goodnewsfortheinsane (staff) at 11:01 PM on May 1 [2 favorites]
posted by goodnewsfortheinsane (staff) at 11:01 PM on May 1 [2 favorites]
Betsy DeVos... was most-sued secretary in history of U.S. Dept. of Education. In less than four years, DeVos and her department were the target of more than 455 lawsuits; in 2019, DeVos became the first education secretary to be held in contempt of court and was ordered to pay a $100,000 fine for continuing to collect loan payments from former students of a defunct for-profit chain of colleges.
posted by Iris Gambol at 11:49 PM on May 1 [19 favorites]
posted by Iris Gambol at 11:49 PM on May 1 [19 favorites]
“By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans,” Cardona added in the statement.Getting people the relief they already deserved under the law is great, and although it increases the absolute amount of forgiveness, I wouldn't really consider fixing the oversights of the previous administration to be same as expanding the amount of relief available to borrowers. It's kind of disingenuous to lump that in with the other ways in which Biden has legitimately attempted to make up for the loss of the original forgiveness program (SAVE plan, additional rulemakings)
Friday’s action addresses “historical failures” and administrative errors that miscounted qualifying payments made by borrowers, according to the Department of Education. Those borrowers affected will include Americans with Direct Loans or Federal Family Education Loans held by the department.
I'm still salty about the original program because a) it was promised (I filled out an application and received a goddamned notice that I had been approved) and b) the case before the Supreme Court was so obviously contrived and only existed to hurt Biden politically. Republicans get to promise and deliver tax cuts all the time, but the one time a President actually promises and tries to deliver across-the-board student loan relief it gets derailed.
posted by RonButNotStupid at 6:13 AM on May 2 [2 favorites]
But you didn't hear too many people credit him for it, because it's difficult for them to admit how successful Biden is as a leftist president.
I get how this makes a huge difference to some people at a point in time, but how does this address an environment that permits the debt in the first place? Is the Biden administration overhauling policy in any substantive way? I think the first comment in the thread is inviting discussion on the "Left-ness" of the current administration, and the mod decision seems arbitrary.
posted by elkevelvet at 8:00 AM on May 2 [7 favorites]
I get how this makes a huge difference to some people at a point in time, but how does this address an environment that permits the debt in the first place? Is the Biden administration overhauling policy in any substantive way? I think the first comment in the thread is inviting discussion on the "Left-ness" of the current administration, and the mod decision seems arbitrary.
posted by elkevelvet at 8:00 AM on May 2 [7 favorites]
Biden’s attempts to implement more significant reform via executive order were blocked by the Supreme Court. This was after Congress refused to pass his proposed legislative reforms. There is an effort underway to have Congress bring up making Community College free. There seems to be some growing Republican support for this idea.
posted by interogative mood at 8:50 AM on May 2 [4 favorites]
posted by interogative mood at 8:50 AM on May 2 [4 favorites]
I've got a friend who went to an Art Institute in this time frame, but at some point changed away from the higher-interest loans he got in the first place (his dad likes to move money around to squeeze out a few extra dollars, and I think probably co-signed some other sort of loan in place of the previous student loan), which seemed like a good idea at the time because the interest was drastically lower, but I think made it so his loans aren't actually covered by this sort of forgiveness. Hope he gets some relief from it, because it's been a real burden, but I don't think he'll qualify.
posted by msbrauer at 8:53 AM on May 2 [1 favorite]
posted by msbrauer at 8:53 AM on May 2 [1 favorite]
LOL. Only in the Bizarro world of American politics
I get this sentiment, but sometimes feels a bit like controlling for the thing you’re trying to measure.
I’ve been ambivalent about student loan forgiveness because 1.) don’t think it really addresses the perverse incentives driving tuition into the stratosphere, 2.) earlier attempts didn’t always seem targeted toward the people who needed it the most and therefor 3.) it could be really backfire politically if it isn’t implemented carefully.
But having had some experience with EDMC, i can say plainly that those people are evil and belong in jail. And having known some people who attended AI, i can say plainly that they were utterly taken advantage of and should be made whole.
In my school of thinking, this is when having an utterly conventional establishment politician like Biden is, arguably, useful in the pursuit of progressive interests, as he has decades of political capital banked with the very people whose support you need to pass something like this. Centerism as peanut butter to coat the (somewhat) progressive pill. Not a thrilling moral triumph, but a real policy victory.
A lot of people hate this transactional, sausage-making view of politics and i won’t fight them on it. I support a ceasefire in Gaza and the brave kids who are protesting for it. I will also be voting for Biden in the fall with a clear conscience and will hand out nose plugs to anyone who needs them.
posted by ducky l'orange at 10:06 AM on May 2 [12 favorites]
I get this sentiment, but sometimes feels a bit like controlling for the thing you’re trying to measure.
I’ve been ambivalent about student loan forgiveness because 1.) don’t think it really addresses the perverse incentives driving tuition into the stratosphere, 2.) earlier attempts didn’t always seem targeted toward the people who needed it the most and therefor 3.) it could be really backfire politically if it isn’t implemented carefully.
But having had some experience with EDMC, i can say plainly that those people are evil and belong in jail. And having known some people who attended AI, i can say plainly that they were utterly taken advantage of and should be made whole.
In my school of thinking, this is when having an utterly conventional establishment politician like Biden is, arguably, useful in the pursuit of progressive interests, as he has decades of political capital banked with the very people whose support you need to pass something like this. Centerism as peanut butter to coat the (somewhat) progressive pill. Not a thrilling moral triumph, but a real policy victory.
A lot of people hate this transactional, sausage-making view of politics and i won’t fight them on it. I support a ceasefire in Gaza and the brave kids who are protesting for it. I will also be voting for Biden in the fall with a clear conscience and will hand out nose plugs to anyone who needs them.
posted by ducky l'orange at 10:06 AM on May 2 [12 favorites]
(So many typos… I am embarrass)
posted by ducky l'orange at 10:18 AM on May 2
posted by ducky l'orange at 10:18 AM on May 2
a man who gives every appearance of being an actual white supremacist
Sometimes the level of ignorance people are comfortable displaying is really mind boggling. Did you get those talking points directly from the far right Heritage Foundation or through an intermediary? The gotcha's cited remind me of the talking points of anti-vaxxers, homeopaths, and flat-earthers. If you take a bunch of things out of context and ignore the overwhelming evidence to the contrary you can "prove" anything. Meanwhile in the real world groups like the National Urban League and the NAACP praise Biden's record on equity and civil rights.
posted by interogative mood at 1:05 PM on May 2 [10 favorites]
Sometimes the level of ignorance people are comfortable displaying is really mind boggling. Did you get those talking points directly from the far right Heritage Foundation or through an intermediary? The gotcha's cited remind me of the talking points of anti-vaxxers, homeopaths, and flat-earthers. If you take a bunch of things out of context and ignore the overwhelming evidence to the contrary you can "prove" anything. Meanwhile in the real world groups like the National Urban League and the NAACP praise Biden's record on equity and civil rights.
posted by interogative mood at 1:05 PM on May 2 [10 favorites]
Sometimes the level of ignorance people are comfortable displaying is really mind boggling
I'll say, especially here; you seem pretty shockingly incapable of a) recognising critique from the left, or b) conceiving of the idea that people might form their own opinions through observation; Biden has done all the things I listed, they're part of his record, anyone can look at it; I've been politically-aware for over thirty years and Biden's record is a large part of why I didn't want him as the Democratic nominee (I voted for Sanders in the primaries) and why I voted for him with reluctance (but I did vote for him).
posted by Pseudonymous Cognomen at 1:14 PM on May 2 [5 favorites]
I'll say, especially here; you seem pretty shockingly incapable of a) recognising critique from the left, or b) conceiving of the idea that people might form their own opinions through observation; Biden has done all the things I listed, they're part of his record, anyone can look at it; I've been politically-aware for over thirty years and Biden's record is a large part of why I didn't want him as the Democratic nominee (I voted for Sanders in the primaries) and why I voted for him with reluctance (but I did vote for him).
posted by Pseudonymous Cognomen at 1:14 PM on May 2 [5 favorites]
"Leftist" as most people understand it in the US is like "alternative music," a bastardized term that's been abused to the point it's become inimical to its original value.
posted by tovarisch at 2:59 PM on May 2 [7 favorites]
posted by tovarisch at 2:59 PM on May 2 [7 favorites]
We are all internet randos who don’t know the first thing about each other. Can’t we avoid careless accusations?
posted by ducky l'orange at 3:47 PM on May 2 [1 favorite]
posted by ducky l'orange at 3:47 PM on May 2 [1 favorite]
I see no reason not to point out when someone is using the same cherry picked evidence used by the far right Heritage Foundation to pretend Joe Biden is a white supremacist when there is overwhelming evidence to the contrary based on his actual policies, appointments and endorsements by organizations who have all the real world credibility on opposing white supremacy like the NAACP and the Urban League.
posted by interogative mood at 6:00 PM on May 2 [7 favorites]
posted by interogative mood at 6:00 PM on May 2 [7 favorites]
Fair enough.
posted by ducky l'orange at 6:02 PM on May 2
posted by ducky l'orange at 6:02 PM on May 2
Some heavy cognitive dissonance for a presumed white supremacist to have a PoC as his running mate. Or it's just a really stupid opinion to voice out loud. My money is on the latter.
posted by They sucked his brains out! at 6:20 PM on May 2 [3 favorites]
posted by They sucked his brains out! at 6:20 PM on May 2 [3 favorites]
(Also, the NAACP and the Urban League are both part of the respectability-politics wing of the Civil Rights movement. They do great work! But of fucking course they endorse Democrats! Like, they're work-within-the-system organizations, part of the nonprofit industrial complex. They are definitely not the ultimate arbiters of "who is a white supremacist"; they're one set of voices among many. There are, i assure you, a great many leftists of color who are loud and clear about Biden's shitty personal and professional racism.)
posted by adrienneleigh at 1:51 AM on May 3 [4 favorites]
posted by adrienneleigh at 1:51 AM on May 3 [4 favorites]
We are all internet randos who don’t know the first thing about each other.
This is significantly less true of Metafilter than like any other website. There's some politics tags where I think I've read every single comment and thread, at least as far back as the 9/11 thread, and where user names are the same, I pay attention.
a man who gives every appearance of being an actual white supremacist
Unquestionably true, based on how he is currently treating Palestinian lives.
posted by Audreynachrome at 2:06 AM on May 3 [7 favorites]
This is significantly less true of Metafilter than like any other website. There's some politics tags where I think I've read every single comment and thread, at least as far back as the 9/11 thread, and where user names are the same, I pay attention.
a man who gives every appearance of being an actual white supremacist
Unquestionably true, based on how he is currently treating Palestinian lives.
posted by Audreynachrome at 2:06 AM on May 3 [7 favorites]
The thing about Biden is that he's called a centrist a lot but he's not really a centrist in the traditional sense. Rather, he's always been where the party is, more or less. The Democratic party as an institution moved pretty hard to the right in response to Regan, and Biden was right there with them. Since that time, the party has pretty much continuously moved left, and he's kept pace. That means that as president he's to the left (or more liberal, if you prefer - the two are interchangeable in this context) of any other president within my lifetime.
Now that said, that's not a high bar and calling him a leftist dilutes the meaning of the word. Calling him a white supremacist dilutes the meaning of that phrase just as much.
posted by vibratory manner of working at 2:13 AM on May 3 [2 favorites]
Now that said, that's not a high bar and calling him a leftist dilutes the meaning of the word. Calling him a white supremacist dilutes the meaning of that phrase just as much.
posted by vibratory manner of working at 2:13 AM on May 3 [2 favorites]
The thing about Biden is that he's called a centrist a lot but he's not really a centrist in the traditional sense. Rather, he's always been where the party is, more or less.
Another way of phrasing this, of course, is "Joe Biden has no actual principles." (Which i think is absolutely correct, for the record!)
posted by adrienneleigh at 2:38 AM on May 3 [2 favorites]
Another way of phrasing this, of course, is "Joe Biden has no actual principles." (Which i think is absolutely correct, for the record!)
posted by adrienneleigh at 2:38 AM on May 3 [2 favorites]
is this a thread about student loan forgiveness?? i forget for some reason.
posted by lalochezia at 5:12 AM on May 3 [6 favorites]
posted by lalochezia at 5:12 AM on May 3 [6 favorites]
Can we just focus on not electing Trump in November and then after that nobody need vote for Biden ever again.
posted by TWinbrook8 at 5:32 AM on May 3 [9 favorites]
posted by TWinbrook8 at 5:32 AM on May 3 [9 favorites]
Mod note: Several more comments and replies removed. Stop turning this thread into a debate about whether Biden is a Nazi, thank you.
posted by Brandon Blatcher (staff) at 6:24 AM on May 3 [4 favorites]
posted by Brandon Blatcher (staff) at 6:24 AM on May 3 [4 favorites]
is this a thread about student loan forgiveness?? i forget for some reason.
the very first comment (51 'likes' as of this moment) explicitly connects this loan forgiveness action with the current president's apparent 'leftness'
the derail is baked in, from what I can tell
posted by elkevelvet at 7:55 AM on May 3 [3 favorites]
the very first comment (51 'likes' as of this moment) explicitly connects this loan forgiveness action with the current president's apparent 'leftness'
the derail is baked in, from what I can tell
posted by elkevelvet at 7:55 AM on May 3 [3 favorites]
That’s awful, Pluto Gangsta. These threads have gotten so nasty i really hesitate to participate sometimes.
posted by ducky l'orange at 9:22 AM on May 3
posted by ducky l'orange at 9:22 AM on May 3
That same commenter then sent me a threatening MeMail message, which I reported to mods.
I'm sorry to hear that too. I once raised the ire of a MeFite sufficiently that they saw fit to send an angry MeMail and that was bad enough, I don't know how I'd receive a threatening one
I will drop it, I can see there will be ample opportunities to discuss the Biden administration in threads to come
posted by elkevelvet at 9:37 AM on May 3
I'm sorry to hear that too. I once raised the ire of a MeFite sufficiently that they saw fit to send an angry MeMail and that was bad enough, I don't know how I'd receive a threatening one
I will drop it, I can see there will be ample opportunities to discuss the Biden administration in threads to come
posted by elkevelvet at 9:37 AM on May 3
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posted by The Pluto Gangsta at 6:08 PM on May 1 [56 favorites]