Another college has cancelled student debt.
Here’s what you need to know.
South Carolina State University will cancel $9.8 million of student debt for 2,500 students. South Carolina State, the state’s only public Historically Black College and University (HBCU) will clear student account balances for continuing students who were struggling financially due to the Covid-19 pandemic. Here’s how South Carolina State is paying for this student debt cancellation:
- Cares Act: $4 million
- American Rescue Plan: $5.8 million
“We are committed to providing these students with a clear path forward so they can continue their college education and graduate without the burden of financial debt caused by circumstances beyond their control,” Acting President Alexander Conyers said. “Our university was founded on the tenet of providing students with access to a quality affordable education. That’s exactly what we intend to do. No student should have to sit home because they can’t afford to pay their past due debt after having experienced the financial devastation caused by a global pandemic.”
Most students who will receive this student debt relief didn’t register for the upcoming semester because of the financial burden of past due account balances. Importantly, this is student loan debt that students owe to the college, not student loan cancellation for private or federal student loans. “Honestly, hearing this news brings tears to my eyes,” said Leslie Young, a freshman who couldn’t attend the school during the spring semester because she didn’t have the money to pay tuition. “My family is very low income. I was in a deep depression because school means everything to me. Without it, I felt like I was giving up on my dreams.”
Student loan cancellation at more colleges
South Carolina State is among other colleges that have proactively cancelled student debt for students.
Biden supports student loan cancellation at these colleges
President Joe Biden has cancelled $3 billion of student loans. Biden also supports wide-scale student loan cancellation up to $10,000 of student loan cancellation for student loan borrowers, but wants Congress to act. (However, the latest stimulus package, infrastructure package and budget don’t include any student loan cancellation). Biden supports additional student loan forgiveness, including student loan cancellation at Historically Black Colleges and Universities (HBCU’s) as well as four year public colleges and universities. Under Biden’s plan, college tuition would be free for students who families earn less than $125,000 annually. Biden also wants student loan cancellation for student loan borrowers who attend these colleges and universities and who earn less than $125,000. However, despite these proposals, Congress has been unable to reach a deal on wide-scale student loan cancellation. This has caused many student loan borrowers to wonder: Did student loan cancellation get cancelled? For many student loan borrowers, it feels all too true.
If you have student loans, make sure you have a solid plan for student loan repayment. Here are some potential options to consider: