Top student loans trends for the week of May 17, 2021: Delaware State University grants over $700,000 in student loan forgiveness

1
Photo by Adobe Stock, Illustration by Bankrate
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

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.

Next steps

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.

Learn more:

Written by
Hanneh Bareham
Student loans reporter
Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand.
Edited by
Student loans editor