Delaware State University Announce Student Loans cancelation for 200 Students

This week, Delaware State University (DSU) announced that it will repay more than $ 700,000 in student loan debt for at least 200 students who have suffered financial hardship as a result of the COVID-19 outbreak.

According to Erudera.com, the decision comes after Education Secretary Miguel Cardona released revised guidelines in March and Congress passed the American Rescue Plan, which allows colleges and universities to use funds from President Joe Biden's $1.9 trillion stimulus bill for student needs.

Furthermore, federal student loan waiver and repayment policies do not apply to institutional student debt, which is owned directly by universities and schools. Failure to repay institutional loan debt may have serious repercussions, such as the withholding of academic transcripts and the inability to transfer credits, complete a degree programme, obtain a secondary degree, or even enrol in graduate school.

During testimony before the US Senate on April 15 this year, Biden's nominee for Undersecretary of Education, James Kvaal, said that student loan cancellation would be based on three pillars: loan cancellation due to pandemic, public service loan cancellation, and cancellation for low-income borrowers.

Kirsten Gillibrand (D-NY) and Senators Tim Kaine (D-VA) wrote to US Education Secretary Miguel Cardona a few days ago, requesting that student loan forgiveness be fixed based on four amendments.