Another college canceled student debt.
Here’s what you need to know.
South Carolina State University will write off $ 9.8 million in student debt for 2,500 students. The State of South Carolina, the State’s only historically black college and university (HBCU), will ‘wipe out student account balances’ for students who continued to experience financial hardship due to the Covid-19 pandemic . Here’s how the state of South Carolina is paying for this student debt cancellation:
- Care Act: $ 4 million
- American rescue plan: $ 5.8 million
“We are committed to providing these students with a clear path forward so that they can continue their college education and graduate without the burden of financial debt caused by circumstances beyond their control,” the acting president said. , Alexander Conyers. “Our university was founded on the principle of providing students with access to affordable, quality education. This is exactly what we intend to do. No student should have to stay home because they cannot afford to pay their outstanding debts after suffering the financial devastation caused by a global pandemic. “
Most of the students who will benefit from this student debt relief have not registered for the upcoming semester due to the financial burden of overdue account balances. It’s important to note that this is student debt that students owe college, not student loan forgiveness for private or federal student loans. “Honestly hearing this news brings tears to my eyes,” said Leslie Young, a freshman who couldn’t attend school during the spring semester because she didn’t have the money. to pay the tuition fees. “My family has very low income. I was in a deep depression because school means everything to me. Without it, I felt like I was abandoning my dreams.
Student loan cancellation at more colleges
The state of South Carolina is among other colleges that have proactively written off student debt.
Biden backs student loan cancellation at these colleges
President Joe Biden canceled $ 3 billion in student loans. Biden also supports large-scale student loan cancellation up to $ 10,000 student loan cancellation for student loan borrowers, but wants Congress to act. (However, the latest stimulus package, infrastructure plan, and budget do not include any student loan cancellations). Biden supports additional cancellation of student loans, including cancellation of student loans at historically black colleges and universities (HBCUs) as well as four-year public colleges and universities. Under Biden’s plan, tuition would be free for students whose families earn less than $ 125,000 a year. Biden also wants student loan cancellation for student loan borrowers who attend these colleges and universities and earn less than $ 125,000. However, despite these proposals, Congress was unable to reach agreement on the large-scale cancellation of student loans. This has led many student loan borrowers to wonder: Has the student loan cancellation been reversed? For many student loan borrowers, this sounds too true. For now, targeted student loan cancellation appears to be the new normal.
If you have student loans, make sure you have a solid plan for paying off your student loans. Here are some potential options to consider: