Surprisingly, this college has just canceled student loans for all of its new graduates.
Here’s what you need to know.
Student Loan Cancellation for All Graduates
Wilberforce University, America’s oldest private university with a historic black history, surprised its alumni yesterday with one final gift from high school: the cancellation of a student loan. This student loan forgiveness comes one day after President Joe Biden refused to cancel the student loan from the last budget… At the end of the university’s opening, Wilberforce President Dr.Elfred Anthony Pinkard announced that the university would cancel all student loan arrears and fines owed to the school for both 2020 and 2021 grades.
“As these alumni begin their lives as responsible adults, we are honored to give them the opportunity to start over, easing their student debt to the university,” Pinkard said. The total amount of the student loan debt relief is approximately $ 375,000 and was funded by the United Negro College Fund, Inc., Jack and Jill, Inc. and other institutional funding sources. Wilberforce also received emergency financial aid for colleges and universities through the Cares Act, a $ 2.2 trillion stimulus package passed by Congress last year. According to the university, funds from the Cares Act helped financially help students who would not otherwise have been able to sign up for the fall classes.
Cancellation of student loan
Student loan cancellation and the Covid-19 pandemic
Wilberforce isn’t the only university to have canceled student loans for its alumni this year. For example, earlier this month, Delaware State University, a public university for blacks, wrote off up to $ 730,655 student loan debt for more than 220 recent alumni who faced financial difficulties during the Covid-19 pandemic… On average, eligible student loans received approximately $ 3,276 debt relief on student loans. “Our students don’t just come here for quality college tuition,” said Delaware President Tony Allen. “Most of them are trying to change the economic trajectory of their lives for themselves, their families and their communities. It is our responsibility to do our best to put them on the path. ” Delaware uses funds from the American Rescue Plan stimulus package to pay student loan cancellation…
Biden: Cancel student loans at these colleges
Biden wants cancellation of student loan in three ways… (However, the last incentive package, infrastructure package as well as budget does not include student loan cancellation). One such way is to decide to cancel student loan at colleges and universities that were historically black (HBCU), as well as four-year public colleges and universities. According to Biden’s plan, college tuition will be free for students whose families earn less than $ 125,000 a year. Biden is also demanding a student loan cancellation for student loan borrowers who attend these colleges and universities and earn less than $ 125,000 a year. As with the widespread student loan cancellation, Biden is urging Congress to pass legislation to make these colleges and universities free of charge student loan cancellations. While Biden is unlikely to issue a decree, Senator Bernie Sanders (I-VT) has already proposed Largest Student Loan Cancellation and Free College Plan in US History… Senate Democrats also proposed four ways to change the amount of student loan forgiveness… Wilberforce and Delaware are just two examples of colleges and universities canceling student loans for their students. Will other colleges and universities be able to cancel student loan debt for their students?
Until then, if you have student loans, make sure you have a reliable student loan repayment plan. Here are some possible options to consider:
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