Surprise, 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 historically black private university, surprised its graduates yesterday with the ultimate graduation gift: student loan cancellation. This student loan discount is coming One day after President Joe Biden abandoned the last budget student loan cancellation. At the end of the university’s start, Wilberforce President Dr Elfred Anthony Pinkard announced that the university would write off all student loan debts and fines owed to the school for the 2020 and 2021 classes.
“As these graduates begin their lives as responsible adults, we are honored to be able to give them a fresh start by relieving their student debt to the university,” said Pinkard. Total student debt relief is approximately $ 375,000 and has been provided through financial support from the United Negro College Fund, Inc., Jack and Jill, Inc. and other institutional funding. Wilberforce also gained access to emergency financial aid for colleges and universities through the Cares Act, the $ 2.2 trillion stimulus package that Congress passed last year. According to the university, Cares Act funds have financially assisted students who otherwise would not have been able to enroll in fall classes.
Student loan cancellation
Student loan cancellation and the Covid-19 pandemic
Wilberforce isn’t the only university to cancel student loans for its graduates this year. For example, earlier this month Delaware State University, a historically black public university, canceled up to $ 730,655 in student loans for more than 220 young graduates facing financial hardship during the Covid-19 pandemic . On average, eligible student loans received approximately $ 3,276 in student debt relief. “Our students don’t just come here for a quality college experience,” said Delaware President Tony Allen. “Most are trying to change the economic trajectory of their lives for themselves, their families and their communities. Our responsibility is to do whatever we can to get them on the right track. The state of Delaware is using funds from the American Rescue Plan stimulus program to pay for a student loan cancellation.
Biden: cancel student loans at these colleges
Biden wants his student loan canceled in three ways. (That said, the latest stimulus package, infrastructure package, and budget does not include any student loan cancellations). One way is to enact the cancellation of student loans at historically black colleges and universities (HBCUs) as well as four-year public colleges and universities. Under Biden’s plan, college tuition would be free for students whose families earn less than $ 125,000 a year. Biden also wants student loan cancellation for student borrowers who attend these colleges and universities and earn less than $ 125,000 a year. Like the large-scale student loan cancellation, Biden is calling on Congress to pass legislation to write off student loan debt at these colleges and universities and make them tuition-free. While Biden is unlikely to issue an executive order, Senator Bernie Sanders (I-VT) has already proposed the largest free student and college loan cancellation plan in U.S. history. Senate Democrats have also come up with four ways to change student loan cancellation. Wilberforce and the State of Delaware are just two examples of colleges and universities canceling student loans for their students. Will more colleges and universities cancel student loans for their students?
In the meantime, if you have student loans, make sure you have a solid plan for paying off student loans. Here are some potential options to consider:
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