The Art Institute Lawsuit and What it Means for You

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art institute lawsuit

The Art institute lawsuit was the result of another Ponzi scheme that blew right in the face of greedy people in the business. Just as with many other educational hubs of the same magnitude, they have been known to use false claims to get students to take educational loans. If the Art Institute and their scheme affected you, then sit close as you read about the Art institute Lawsuit and what it could mean for you.

What is the Art institute lawsuit about?

Educational Management Corporation, which owns the Art Institutes, is being accused of abusing the US consumer laws for protection. As a result, in 2015, they agreed to forgive 103 million dollars in student loan debts.

The corporation also agreed to hand over 95.5 million dollars after whistleblowers claim that they were using unorthodox tactics to recruit students. This recruitment strategy violated US federal laws. If you have taken any loans for the Art Institute, you should see this as good news. Reason being that this opens up doors for you to apply for the Borrower’s Defense Against repayment program that can help you get the money back. 

In short, the Art Institute Lawsuit proves the school has broken US laws. The school has never admitted to carrying out illegal activities. Though, for some reason, they agree to pay out around 200 million dollars to shoo the lawsuits away. Sounds pretty fishy, but hey, this means that you have an excellent chance of getting a piece of the pie. It is possible for you to eradicate the loans you took to attend the school. Because you took those loans to pay for your prosperous education, and they tricked you into debt, you deserve to get back every penny.

Two main ways of getting forgiveness

Taking advantage of the lawsuit, there are two main ways for you to apply for Art institute student loan discharge. The first way is through the Borrower’s Defense Against Repayment Program. The second way is the Closed School Student Loan Discharge Program. 

You do not have the comfort of applying for both programs. This means that you will need to opt for the plan that best suits your situation, increasing your chances of getting a discharge. But no worries, down below, you will find information about each program. So, take a closer look and consider the one that best fits you!

Borrower’s Defense Against Repayment

The first program to consider would be the Borrower’s Defense Against Repayment Program (BDAR). The aim of this program is to help those who took federal student loans to attend schools that wrongfully convinced them to attend. In a way, tricked them with false advertising and promises. 

Concerning the Art institute Lawsuit, it is clear that the institution broke many laws to get students to take out loans. If you or someone else has taken out such loans, then you are more than eligible for the loan forgiveness program. This program has the power to grant you complete loan forgiveness.

You should keep in mind the fact that you are not the only person that this matter affected. There are thousands of other students and postgraduates who have been tricked into taking loans. Those students should have to pay off for the majority of their life if this case cannot be resolved. You could have been deceived through illegal marketing, recruiting, and enrollment campaigns. Many students who fell for the scheme have enrolled for this program, and have gotten their forgiveness. 

If you have any doubts about the lawsuit against the Art Institute and are wondering if you could get forgiveness, you should know that this is a 100 percent legitimate program run by the US Government. Because the US DOE is backing you up, you should be confident about getting your loans to wipe off. This could even be the only opportunity for many students. 

In short, if you are considering the Borrower’s Defense Discharges, you should know that there is a perfect chance you will have your student loans eradicated. You are saving you thousands of dollars and many years of regret ahead. 

Closed School Student Loan Discharge

If you have reason to believe that the Art Institute has not defrauded you into taking unnecessary loans, then no worries because there is another way for you to have your student loans forgiven. You could do this through the Closed School Student Loan Discharge program. This is the second-best shot students have to get an Art institute student loan discharge. 

The program aims to help students that had their schools close before they had a chance to complete their education. Therefore, they could not get their degrees. To qualify for the program:

  1. You need to be either an actively enrolled student at the Art Institute leading up to the closing
  2. Or left the school less than 120 days before closing

Hence, if you were an Art Institute student on the date of closing, or left the school no more than 120 days before the date, you are good to go. You could qualify automatically, and have your student debts erased through the Closed School Loan Discharge program. 

Which one is better?

Well, that would be rather hard to say. The reason for this is, both programs are designed to discharge you of your outstanding student debt. They could even refund you the money you have paid towards your loan balance up to the date you get forgiveness. Keeping this in mind, if you were stuck between the two programs, and had the comfort of being eligible for both, it would be better to go with the Closed School Discharge program. The reason for this is, the CSDP has a faster approval rate than the Borrower’s Defense Against Repayment program. 

To further cement the claims, you should understand that you cannot apply for both of the programs. In the end, you will need to choose one over the other. Let’s assume that you do qualify for both of them. In that case, it is highly advised that you go for the Closed School Loan Discharge Program. Simply, the application processing for the Borrower’s Defense program can take months or even years to process. 

In the end, like with anything, the choice is solely up to you. Your best bet would be to read all of the available information regarding the topics. Then, choose a program that fits your needs. Because in the end, you will be getting forgiveness for your loans. 


See the Art Institute Lawsuit as a sweet opportunity to wipe off your student loans into the dust, not to be seen ever again. To achieve this goal, you have two noble options: 

  • The Borrower’s Defense Against Repayment
  • and the Closed School Loan Discharge Program

In the case of the Art Institute Lawsuit, students have both options to go for. The only challenge left for them to overcome is finding a program that best fits them.