In the ever-changing world of student loans, staying on top of current events and student loan rates is critical. Below are this week’s student loan trends that could affect your loans — and your wallet.
1 current trend within student loans for the week of May 17, 2021
1. Delaware State University forgives over $700,000 in student loan debt for graduates
Delaware State University (DSU) is offering over $700,000 in student loan relief for graduates impacted by the COVID-19 pandemic. These funds come from the American Rescue Plan, which allocated emergency funding to colleges with the intention of helping students with financial need.
DSU President Tony Allen explained that this action has long-reaching 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 everything we can to put them on that path.”
DSU will forgive up to $730,655 in institutional aid, amounting to an average of about $3,276 in relief for more than 220 students.
How this affects student loans
Higher education funds from the American Rescue Plan were geared toward historically under-funded institutions, with 7.5 percent of the funds dedicated to historically Black colleges and universities (HBCUs) like DSU.
While some of the funds can be put toward things like technology or safety improvements, colleges must use a portion of the funds for emergency grants for students. DSU is the first college to use those funds for such a sweeping student loan forgiveness initiative, but other types of aid could be available if you attend a school that received funding.
Whether you’re new to student loans or well into repayment, it’s wise to stay informed about how your student loan rates could change. As 2021 continues, more opportunities for cheaper loans or loan forgiveness could open up; keep an eye on the Bankrate student loans news hub for the latest trends.