Another college has just canceled student loan debt.
Here’s what you need to know.
Dallas College forgives student loan debt for 14,000 students in the last year. The college, which is based in Dallas, Texas, has accessed funds from the federal government’s College Emergency Fund, which are stimulus funds in response to the Covid-19 pandemic.
“The clearance of sales will bring much needed relief to many of our students,” said Dr. Marisa Pierce, Assistant Vice Chancellor, Enrollment Management, Dallas College. “We hope that removing this barrier will enable them to pursue their education and employment goals. It is our responsibility as an institution to do everything in our power to put it on the path to success. “
Student loan cancellation: more colleges are canceling student loan debt
Dallas College is not the first college to write off student debt. Recently, several schools have taken steps to cancel student loans. For example, Wilberforce University, the oldest historically black private university in the United States, has written off all student loan debts and fines owed to the school for classes of 2020 and 2021. This student loan remission is intervened One day after President Joe Biden abandoned the student loan cancellation from the last federal budget. Last month, Delaware State University, a historically black public university, forgave up to $ 730,655 in student loan debt for more than 220 recent graduates who faced financial hardship during the Covid-19 pandemic. On average, students got about $ 3,276 in student debt relief. The state of Delaware also accessed US bailout stimulus funds to pay for student loan cancellations.
Student loan cancellation: an upward trend?
Has the student loan cancellation been canceled? Congress was unable to reach agreement on the cancellation of large-scale student loans. Despite several student debt cancellation proposals – including up to $ 50,000 in student loans – student borrowers are wondering if they will get their student loan forgiven. If there is a student loan cancellation, these student loan borrowers are unlikely to qualify, potentially excluding millions from a large-scale student loan cancellation. At the same time, there has been an emerging trend of non-government actors canceling student loans and helping with student loan repayments.
Colleges cancel student loans
For example, colleges and universities from Dallas College to Wilberforce University have passed student loan cancellation for students. As reported, several colleges and universities have canceled student loans with funds from the latest stimulus package in response to the Covid-19 pandemic.
Your employer can repay your student loans
Yes, your employer can also help you pay off your student loans. Congress created financial incentives for employers to help employees pay off student loans and get favorable tax treatment in return. Under the Cares Act – the $ 2.2 trillion stimulus package – employers can make tax-free payments up to a maximum of $ 5,250 per employee, including private and federal student loans. Employers and employees save on federal payroll taxes on eligible payments, while employees save on federal income taxes. This employer student loan relief was scheduled to expire on December 31, 2020, but Congress has extended this student loan relief until December 31, 2025.
Expect colleges and universities as well as private employers to help students and employees pay off student loans faster and reduce debt. The extent of such student loan relief is unknown, but there has been a tendency for other actors besides the federal government to assist student loan borrowers with student loan cancellation and repayment.
If you have student loans and didn’t get your student loan canceled from your college, consider these options for paying off student loans:
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