These colleges have just written off $ 17 million in student debt.
Here’s what you need to know.
Another group of colleges canceled student debt for their students. Connecticut Colleges and Universities (CSCU) are canceling a $ 17 million debt to community college students due to the Covid-19 pandemic. Here are the details:
- will affect 18,161 students;
- includes both current and former students;
- writing off student debt on accounts from summer 2019 to spring 2021;
- funded by the federal government; as well as
- students have no conditions to receive student debt forgiveness
Specifically, Connecticut colleges and universities paid to write off student debt from the Emergency Relief Fund for Higher Education. It is a federal grant program that helps colleges and universities pay off student debt due to the Covid-19 pandemic. Outstanding account balances were money that students owed directly to colleges, not a private loan to a lender or federal student loans to the government. Since 2020, Connecticut colleges and universities have used incentive funds to disburse more than $ 56 million in direct student payments.
“Community college students have been particularly hard hit by COVID-19,” said CSCU President Terrence Cheng. “By clearing the debt of these students to their educational institutions, we are removing the obstacle that prevents too many people from continuing their educational journey. Our message to students is simple: you now have a blank slate, so if your account balance was in the way, you can now register for the fall semester classes. “
Other colleges cancel student debt
Connecticut colleges and universities were among the first to cancel student debt for community college students (versus four-year college students), which were hit particularly hard during the Covid-19 pandemic. Several colleges have canceled student debt for students in recent months in response to Covid-19. For example, State University of South Carolina, the only State Historically Black College and University (HBCU) in the state, canceled $ 9.8 million student debt for 2500 students. Similar to Connecticut’s colleges and universities, South Carolina State University has gained access to federal funds, including the Care Act and the American Rescue Plan. Dallas College has canceled student loan debt for 14,000 students through the College Emergency Fund. Wilberforce University, America’s oldest private university with black history, canceled all student loan debt and school fines from classes 2020 and 2021. The announcement was made just a day after President Joe Biden excluded student loan cancellation from his latest budget… Delaware State University, a state university historically for blacks, has written off up to $ 730,655 student loan debt for more than 220 recent graduates who have encountered financial difficulties during the Covid-19 pandemic… Like the University of South Carolina, Delaware used funds from the American Rescue Plan to fund student loan cancellation…
Student Debt Cancellation: A Growing Trend?
Many student loan borrowers are wondering: student loan cancellation canceled… With no clear path to large-scale student loan abolition, student loan borrowers are wondering what will happen next with the student loan repayment. And this despite the fact that Biden Cancels $ 3 Billion Student Loans… However, questions arise about who is canceling student debt, if anyone. Will it be a government? Will these be colleges? Will they be employers? Combination? These colleges have written off student debt early with federal incentive funds. However, some question whether this trend will continue.
- Will other colleges be able to cancel student debt, including private and federal student loans?
- Will colleges use incentive funds or will they use their own money?
- Will more colleges abolish student loans through a “no student loan” policy?
- Will there be a tuition fee reduced to make college more accessible and students can borrow less?
Until then, make sure you have an action plan for paying off your student loans. The best thing you can do now is take care of your student loans in advance. Here are some possible options to consider: