Current student loan news for the week of May 17, 2021
In the ever-changing world of student loans, staying on top of student loan news and rates is essential. Below are this week’s student loan trends that could affect your loans and your portfolio.
1 current trend in student loans for the week of May 17, 2021
1. Delaware State University Cancels Over $ 700,000 In Student Loans For Graduates
Delaware State University (DSU) is offering more than $ 700,000 in student loan relief to graduates affected by the COVID-19 pandemic. These funds come from the American Rescue Plan, which allocated emergency funds to colleges to help students in financial need.
DSU President Tony Allen explained that this action had long-term effects. “Our students don’t just come here for a quality college experience,” he said in a press release. “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 put them on this path. “
The DSU will forgive up to $ 730,655 in institutional assistance, or an average of approximately $ 3,276 in assistance to more than 220 students.
How it affects student loans
The American Rescue Plan’s higher education funds were intended for historically underfunded institutions, with 7.5% of the funds going to historically black colleges and universities (HBCUs) like the DSU.
While a portion of the funds can be spent on things like technology or improving security, colleges must use a portion of the funds for emergency grants for students. DSU is the first college to use these funds for such a radical student loan forgiveness initiative, but other types of help might be available if you attend a school that has received funding.
Whether you are new to student loans or are in a position to repay, it is wise to stay on top of changes in your student loan rates. As 2021 continues, more opportunities for cheaper loans or loan forgiveness may open up; Keep an eye on the Bankrate student loans news hub for the latest trends.