These colleges just canceled $ 17 million in student debt
These colleges have just written off $ 17 million in student debt.
Here’s what you need to know.
Another group of colleges forgave their students’ student debt. Connecticut State Colleges and Universities (CSCU) will write off $ 17 million in student debt for community college students due to the Covid-19 pandemic. Here are the details:
- will have an impact on 18,161 students;
- includes both current and former students;
- student debt canceled for account balances from summer 2019 to spring 2021;
- funded by the federal government; and
- there is no condition for students to obtain the forgiveness of their student debts
Specifically, Connecticut state colleges and universities have paid for student debt relief with funds from the Higher Education Emergency Aid Fund. This is a federal grant program that helps colleges and universities pay off student debt due to the Covid-19 pandemic. The overdue account balances were money students owed directly to colleges, rather than a private loan owed to a lender or federal student loans owed to the government. Since 2020, Connecticut colleges and universities have used stimulus funds to distribute more than $ 56 million in direct payments to students.
“Community college students have been particularly affected by COVID-19,” said CSCU president Terrence Cheng. “By eliminating the debt of these students to institutions, we are removing a barrier that prevents too many people from continuing their education. Our message to students is simple: you now have a clean slate, so if an account balance got in the way, you can now enroll in fall semester courses.
More Colleges Are Canceling Student Debt
Connecticut colleges and universities are among the first to write off student debt for community college students (compared to four-year college students), who were particularly hard hit during the Covid-19 pandemic. In recent months, several colleges have written off student debt in response to Covid-19. For example, South Carolina State University, the state’s only historically black university and university (HBCU), forgave $ 9.8 million in student debt for 2,500 students. Like Connecticut state colleges and universities, South Carolina State University has accessed federal funds, including the Cares Act and the American Rescue Plan. Dallas College forgave 14,000 student loan debt through the College Emergency Fund. Wilberforce University, the oldest historically black private university in the United States, canceled all student loan debts and fines owed to the school for the 2020 and 2021 classes. The announcement came just one day afterward. that President Joe Biden removed the cancellation of student loans from his last budget. Delaware State University, a historically black public university, has written off up to $ 730,655 in student loan debt for more than 220 recent graduates who have faced financial hardship during the Covid-19 pandemic. Like South Carolina State University, the state of Delaware has used funds from the American Rescue Plan to fund student loan cancellation.
The cancellation of student debt: an upward trend?
Many student loan borrowers ask if their student loan cancellation has been canceled. Without a clear path to full-scale student loan cancellation, student loan borrowers are left wondering what the next step is for student loan repayment. This despite the fact that Biden canceled $ 3 billion in student loans. However, this raises questions about who, if any, will write off student debt. Will it be the government? Will it be the colleges? Will it be the employers? A combination? These colleges have proactively written off student debt with federal stimulus funds. However, some wonder if this trend will continue.
- Will more colleges cancel student debt, including private and federal student loans?
- Will the colleges use stimulus funds or will they use their own money?
- Will more colleges eliminate student loans with a “no student loan” policy?
- Will the tuition fees be reduced to make college more affordable and students can borrow fewer student loans?
In the meantime, make sure you have a game plan for your student loans. The best thing you can do now is be proactive about your student loans. Here are some potential options to consider: