South Carolina State University Forgives Loans to 2,500 Former Students | US student debt


University in South Carolina pardons student loans for more than 2,500 students who have dropped out of school due to financial difficulties.

South Carolina State University, the state’s only historically black college or university (HBCU), announced last week that the school will automatically clear the loan accounts of students who did not register for classes or dropped out altogether because they could no longer afford college. …

The school said it will revoke a total of $ 9.8 million in cash loans from the Cares Act and American Rescue Plan stimulus packages designed to help America recover from the impact of the coronavirus pandemic.

“We are committed to providing these students with a clear path forward so that they can pursue college and graduate without the burden of financial debt caused by circumstances beyond their control,” said Alexander Conyers, acting president of the university.

Conyers added: “No student should be sitting. [at] home because they cannot afford to pay off their arrears after experiencing the financial devastation caused by the global pandemic. “

Known as a site Orangeburg massacre, in which three students were killed by police following a segregation protest in 1968, South Carolina State University was the second HBCU to announce a debt cancellation. Wilberforce University, a private HBCU in Ohio, said in June that undo Student loans in the amount of US $ 375,000 are due to students in their final grades of school.

While the federal government temporarily froze payments on student loans that are due to expire on October 1, the pandemic has not brought relief to the sprawling student debt crisis. More than 42 million Americans have student loans totaling $ 1.6 trillion. More than a third of Americans who go to college borrowed pay for their education.

The persistent racial wealth gap in a country, with the average black American household about 10 times less wealthy than the average white American household, can be seen in racial inequality among Americans with student debt. More Black Americans Compared to White Americans per on student loans, and fewer students paid off loans altogether.

The issue has caught the attention of prominent lawmakers and activists who have called on the Biden administration to write off student debt.

“You cannot be anti-racist if you oppose the abolition of student debt,” said Ayanna Pressley, a Democratic congressman from Massachusetts. tweeted in April.

After Biden pledged to close the racial wealth gap during a speech marking the 100th anniversary of the Tulsa massacre, NAACP President Derrick Johnson criticized Biden’s lack of a plan to address student debt, which “disproportionately affects African Americans.”

“You can’t start bridging the racial wealth gap without addressing the student loan debt problem,” Johnson said. Washington Post

Administration said the Department of Education is working on a memorandum as to whether Biden will be legal to cancel student debt through enforcement action, although this dont clear when the memo will be released.

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