Fayetteville State University (FSU) used COVID-19 relief funding from the American Rescue Plan to pay off outstanding university debt for all students who studied during the pandemic. The former Soviet Union is one of a growing number of universities that have begun to eliminate institutional debt for students. Here’s what you need to know about student loan news this week.
1 major trend in student loans this week
1. Fayetteville State University has paid off student loan debt to thousands of students
Fayetteville State University (FSU), historically a black university in North Carolina, has used over $ 1 million in COVID-19 aid to write off student loan arrears for students. Students are eligible for forgiveness if:
- They attended the BSS from fall 2019 to spring 2021.
- They have student loan arrears.
More than 1,400 students are expected to enter the fall semester debt-free as a result of this move.
Funding for the former Soviet Union comes from the Higher Education Emergency Relief Fund III (HEERF III), included in the American Rescue Plan, which was signed by the Biden administration in March this year. The grant provided $ 39.6 billion in coronavirus aid to colleges and high schools to help students in financial difficulties.
How does it affect student loans
CIS is one of many educational institutions that have used HEERF III funds to write off student loan debt; Two other recent examples are Wilberforce University and Delaware State University. With additional funds from HEERF III, other universities can follow suit. In all these cases, the debt forgiven is solely a debt to the university itself, not to the federal government or private creditors.
Here’s how to prepare
Whether you are new to obtaining student loans or in the process of paying off, it is wise to be aware of how student loan rates can change. As 2021 progresses, more opportunities may open up for cheaper loans or loan forgiveness; follow up Student Bank Loan News Center for the latest trends.