Current student loan news for the week of July 5, 2021
Fayetteville State University (FSU) used COVID-19 relief funding provided by the American Rescue Plan to write off the outstanding college debt of all students who attended during the pandemic. FSU is one of a growing number of universities that have started to eliminate student institutional debt. Here’s what you need to know about the emergency loan news this week.
1 big trend in student loans this week
1. Fayetteville State University clears the student loan debts of thousands of students
Fayetteville State University (FSU), a historically black university located in North Carolina, has used more than $ 1 million in COVID-19 aid to write off college student debt. Students are eligible for pardon if:
- They attended USF between fall 2019 and spring 2021.
- They have past due student debt.
As a result of this decision, more than 1,400 students are expected to begin the fall semester debt-free.
Funding for the FSU comes from the Higher Education Emergency Relief Fund III (HEERF III) – part of the US bailout – which was promulgated by the Biden administration in March of this year. This grant has provided colleges and high schools with $ 39.6 billion in coronavirus aid to help students in financial difficulty.
How it affects student loans
FSU is one of the many institutions that have used HEERF III funds to write off student loan debt for their students; Two other recent examples are Wilberforce University and Delaware State University. With the additional funds from HEERF III, more universities could follow suit. In all of these cases, the canceled debt is exclusively a debt to the university itself, and not to the federal government or private lenders.
Here’s how to prepare
Whether you’re new to student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellations may open up; Keep an eye on the Bankrate student loan news center for the latest trends.