Key point: Since taking office as president, Joe Biden has been asked to forgo a certain amount of student loans.
The president has adopted debt relief, in connection with some shady universities that have actively defrauded students.
Biden has been urged by activists to unilaterally write off $ 50,000 in federal student loans per borrower under the Higher Education Act, although the administration has asked the Department of Education to conduct a legal review for determine whether such an action would be permitted. It is not known what the status of this exam is. Meanwhile, the Biden administration has not made any major legislative proposals regarding the cancellation of student loans.
However, one state announced a student loan forgiveness plan.
New York Governor Andrew Cuomo announced the CUNY Return Program, which applies to people who attended New York City University’s System School during the pandemic. The program’s goal is “to wipe out up to $ 125 million in unpaid debt for at least 50,000 students who attended CUNY and suffered financial hardship during the COVID-19 pandemic.”
Announcement calls it “one of the largest student debt remissions in the country [plans] of its kind. ”
“The COVID-19 pandemic has caused hardship in the lives of so many New Yorkers, and our students have been among the hardest hit,” Cuomo said in the announcement. “This historic new program eliminates millions of dollars in unpaid debt, providing much-needed relief to tens of thousands of CUNY students as they work to recover from the pandemic and plan for their future.”
The pardon will be funded by money allocated to CUNY from New York’s award of the American Rescue Plan Act.
“CUNY students have shown their great resilience in the face of the immeasurable hardships they have faced over the past 16 months, from loss of jobs and income to food and housing insecurity, in the midst of a crisis. unprecedented health care that has caused disease and tragedy to thousands of New York families, ”CUNY Chancellor Félix V. Matos Rodríguez said in the announcement.
“This compassionate action will enable CUNY students and recent graduates to move forward in the pursuit of their educational and professional goals without the specter of tuition fees and unpaid fees. This historic step will also strengthen CUNY’s important contributions to New York’s economic recovery. ”
The CUNY board approved the use of $ 125 million at a July 6 meeting. The university system estimates that 50,000 students will benefit from this advantage. Students are eligible if they were enrolled in CUNY between March 13, 2020 and the spring semester 2021, if they are “determined to have trouble” and those who have a certain outstanding balance per semester.
Stephen Silver, Technology Writer for The National Interest, is a journalist, essayist, and film critic who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Revue de rue and splice today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in the suburbs of Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.