Student Loan Cancellation For 14,000 Students in Texas

Students cheer as they graduate. (Photo credit should read EMMANUEL DUNAND / AFP via Getty … [+] Images)

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Another college just canceled its student loan debt.

Here’s what you need to know.

Student Loans

Dallas College canceled 14,000 student loan debts last year. The Dallas, Texas-based college accessed funding from the federal government’s emergency fund for colleges, which are business stimulus funds in response to the Covid-19 pandemic.

“Clearing the balances will provide much-needed relief for many of our students,” said Dr. Marisa Pierce, Assistant Vice Chancellor, Enrollment Management, Dallas College. “We hope that by removing this barrier, we will enable them to pursue their educational and employment goals. It is our responsibility as an institution to do everything we can to get it on the road to success. “

Cancellation of student loan: More and more universities are canceling their student loan debts

Dallas College is not the first college to issue student loans to its students. Recently, several schools have taken action to cancel student loans. For example, Wilberforce University, America’s oldest private, historically black university, cut all student loan debts and penalties owed by the school from the 2020 and 2021 classes of the last federal budget. Last month, Delaware State University, a public, historically black university, cut up to $ 730,655 in student loans for more than 220 graduates who got into financial trouble during the Covid-19 pandemic. On average, students received approximately $ 3,276 in student loan debt relief. The state of Delaware also drew funds from the US bailout stimulus package to pay for the cancellation of the student loan.

Student loan waiver: growing trend?

Has the student loan cancellation been canceled? Congress was unable to come to an agreement on extensive student loan waivers. Despite several proposals to cancel student loan debt – including up to $ 50,000 in student loan – student loan borrowers are wondering if they can get student loan waiver. If there is a student loan cancellation, these borrowers are unlikely to qualify, which could preclude millions of people from major student loan cancellation. At the same time, there is a trend towards non-governmental actors canceling student loans and helping to repay student loans.

Universities cancel student loans

For example, colleges and universities from Dallas College to Wilberforce University have waived student loan cancellations for students. As mentioned earlier, in response to the Covid-19 pandemic, several colleges and universities have canceled student loans using funds from the latest stimulus package.

Your employer can pay off your student loan

Yes, your employer can also help you pay off your student loans. Congress created financial incentives for employers to help workers repay their student loans in exchange for favorable tax treatment. The Cares Act – the $ 2.2 trillion stimulus package – allows employers to make tax-free payments of up to $ 5,250 per employee, including private and government student loans. Employers and employees save federal wage taxes on qualifying payments, while employees save federal income taxes. This student loan relief from the employer was due to expire on December 31, 2020, but Congress extended this student loan relief to December 31, 2025.

Expect colleges and universities, as well as private employers, to help students and employees pay off student loans faster and reduce student loan debt. The extent of these student loan reliefs is unknown, but there is a trend that other actors besides the federal government are also helping student loan borrowers with student loan approval and repayment of student loans.

If you have student loans and your university has not canceled your student loan, consider these options to pay off student loans:

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source https://collegeeducationnewsllc.com/student-loan-cancellation-for-14000-students-in-texas/