What Biden’s Free College Plan Might Mean for You | Personal finance
Biden’s college plan could reduce the amount of debt and the number of students who need to take out student loans to complete their studies. Thomas Hudson, president of Jackson State University in Mississippi, says lower college costs and the burden of student debt would change the landscape of HBCUs.
“One of the factors driving down retention rates is the financial situation – students just can’t afford a college education year after year,” says Hudson. âWhat it does is it traps students in a pretty tough cycle of debt where they pay more for their education, and it puts them in a state where they have to go into more debt or they have to take ( semesters of leave). “
About 45% of high school graduates who enroll in four-year college in 2021 are expected to take out student loans. Those who earn a bachelor’s degree from a four-year public college could graduate with an average of $ 38,147 in student loan debt, according to an upcoming NerdWallet study. This ever-growing debt burden leaves some student supporters saying that America’s plan for families does not go far enough.
Jessica Thompson, Associate Vice President of the Institute for College Access and Success, said in a written statement: âWhile these investments are historic, we encourage policy makers to go even further by including all public four-year colleges. and doubling the maximum of the Pell Grant, which together would provide all students with access to affordable, quality education without having to rely on too much student debt. “