$125 Million In Student Debt Forgiveness Announced For 50,000 Students, Using Biden Stimulus Funds

$125 Million In Student Debt Forgiveness Announced For 50,000 Students, Using Biden Stimulus Funds

Tens of hundreds of students will likely be eligible for thousands and thousands of {dollars} in student debt forgiveness, New York Governor Andrew Cuomo introduced on Wednesday.

50,000 students who’ve attended the City University of New York (CUNY) system will likely be eligible to have their student money owed cancelled beneath the initiative. Cuomo’s workplace known as it “one of the nation’s largest student debt forgiveness plans of its kind,” and estimated that the initiative would wipe out as much as $125 million in unpaid student debt.

“The COVID-19 pandemic has caused hardships in the lives of so many New Yorkers, and our students were among those most impacted,” Governor Cuomo mentioned in a press release. “This landmark new program eliminates millions of dollars in unpaid debt, providing much-needed relief to tens of thousands of CUNY students as they work to get back on their feet after the pandemic and plan for their futures.”

“CUNY students showed their great resilience in the face of the immeasurable hardships they faced over the past 16 months, from employment and income loss to food and housing insecurity, amid an unprecedented health crisis that brought sickness and tragedy to thousands of New York families,” mentioned CUNY Chancellor Félix V. Matos Rodríguez. “This compassionate action will allow CUNY students and recent graduates to move ahead in pursuit of their educational and career objectives without the specter of unpaid tuition and fees. This landmark measure will also enhance CUNY’s important contributions to New York’s economic recovery.”

The initiative by the CUNY Comeback Program will use federal stimulus cash to finance the student debt forgiveness. After passage of Biden’s landmark stimulus package deal in March, Secretary of Education Miguel Cardona up to date coverage steerage permitting faculties and universities to make use of federal stimulus {dollars} for a wide range of student monetary wants within the face of the pandemic, together with cancelling student debt in sure circumstances.

“Many students have had their postsecondary careers turned upside down as they manage their schoolwork while also protecting themselves from this virus,” mentioned Education Secretary Cardona in March when he introduced the coverage change. “We hope each eligible student takes benefit of those advantages whereas persevering with to concentrate on their research.”

The debt forgiveness will cowl tuition balances and unpaid institutional student money owed owed to CUNY instantly. According to Cuomo’s workplace, eligible students are these “who were enrolled at the University from March 13, 2020, the date the coronavirus was declared a national emergency, through the Spring 2021 semester and accrued tuition and fee balances during that time… This action covers the Spring, Summer and Fall 2020 semesters and the Spring 2021 semester, including students who have graduated.”

Further Reading

Did The Biden Administration Just Send A Big Signal On Student Loan Cancellation?

Student Loan Cancellation Debate Continues Amidst Servicer Disruptions

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Huge Student Loan Servicing Shakeup: This Major Loan Servicer Is Ending Its Contract

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