University Cancels $700,000 in Student Debt for 220 Graduates Affected by the Pandemic

Delaware State University -- also known as DSU -- "is cancelling more than $700,000 in student loans for recent graduates hit hard by the Covid-19 pandemic," reports CNN: DSU will cancel $730,655 for more than 220 people, the school announced this week...

"Too many graduates across the country will leave their schools burdened by debt, making it difficult for them to rent an apartment, cover moving costs, or otherwise prepare for their new careers or graduate school," said Antonio Boyle, DSU's Vice President for strategic enrollment management. "While we know our efforts won't help with all of their obligations, we all felt it was essential to do our part."

DSU is paying for the expenses through the federal American Rescue Plan for COVID-19 relief, university officials said in the statement Wednesday.
The school says that the average eligible student will qualify for about $3,276 in debt relief, according to a Delaware newspaper. They quote a statement from the School President that "Our students don't just come here for a quality college experience. 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 the path."

Pass it along.

[Ostracus]

DSU is paying for the expenses through the federal American Rescue Plan for COVID-19 relief, university officials said in the statement Wednesday. [...]
  "While we know our efforts won't help with all of their obligations, we all felt it was essential to do our part."

Easy to be magnanimous when it's not your money.

Re:Pass it along.

[ShanghaiBill]

The lifetime earnings of someone with a college degree are $900k higher than someone with just a high school diploma.

Most of the recipients of this forgiveness are, or will be, in the top half of the income distribution.

If we are going to hand out tax dollars, perhaps the handouts should be better targeted.

Re: Pass it along.

[guruevi]

I didnâ(TM)t see my taxes go up during Trump. In fact, the bottom 80% got massive tax cuts. PPP wasnâ(TM)t supposed to be a handout but a loan, the Dems in the house wouldnâ(TM)t pass it unless it was at least partially a hand-out. You should really learn about who in the government held up COVID aid and even vaccine development. We couldâ(TM)ve had vaccines in June of 2020, the FDA didnâ(TM)t approve it even though prior experiments with mRNA vaccines showed they were relatively sa

Re:

[Gravis Zero]

If we are going to hand out tax dollars, perhaps the handouts should be better targeted.

I agree, which is why we should do away with the zillions of tax cuts that we give to businesses. On top of that we should cap the maximum amount an individual can deduct to $250K. It's only fair, right?

Re:

[KGIII]

It's also only ~$3200/student. It's less generous seeming when you look at that figure.

Re:

[drkshadow]

Oh, don't worry.

They only got $3265.And only 220 people.

What's the enrollment at that school? 220 people, over four years, got a scratch-off ticket winning's worth of debt dismissed. (Now, legally, they'll have to claim that as income on their taxes.)

Re:

[bobbo666]

I do find it nice that they haven't raised tuition in last 6 years. That puts this Uni in a class of its own. Most are run by bloodsucking bastids. Think Harvard. Billions of $$ of assets/trust, yet they charge an outrageous amount and racially discriminate against Asians. Would have been nice if they'd mentioned what types of degrees ran up this debt. I do feel that a student should study in a field that holds out some promise of helping their career. If they opt for a degree in basket weaving, you a

Re:

[account_deleted]

Comment removed based on user account deletion

Re:

[CrimsonAvenger]

Easy to be magnanimous when it's not your money.

And not much money, either. $700K spread over 220 students averages only $3200 per student. And annual costs for that university are in the range of 24K for in-state students.

Re:

[Anonymous Coward]

Easy to be magnanimous when it's not your money.

Exactly. The university isn't doing shit. They are just spending someone else's money.

Take the $700k from the university president's salary. Then you'll be doing something.

For anyone who thinks these grads are lucky

[rsilvergun]

Like anyone who graduated in 2008 their lifetime earnings will be permanently lower. That's because their base pay will be based on the base pay that was available when they graduated. Lower base pay will allow employers to permanently keep their wages depressed.

Re:For anyone who thinks these grads are lucky

[ShanghaiBill]

The average American job-hops every 4 years.

In many states, it is illegal for employers to ask about your previous salary. In no states is an applicant required to disclose their previous salary.

Re:

[Powercntrl]

They successfully graduated college, and got some of their debt wiped out. And you’re saying that’s not “lucky” because they might have to wait a bit before buying their suburban 3/2 with garage and a brand new Tesla?

Anybody who graduates from a decent college is practically guaranteed the American dream, provided they show up to their job interviews. There are people in this country who are in need of far more basic necessities (food/shelter/medical care), so I have a hard time se

Snowflake 101

[kackle]

Hmm, are they teaching one more lesson: When the going gets tough, SOMEONE should have to sacrifice and come to your rescue.

Cancel culture

[Bu11etmagnet]

Now that's one cancel culture I can agree with.

Gimme

[armada]

I wanted to go to a good tech school and had the grades to get in but not the money. I went to my local state school which cost only about 6k per semester and worked to pay for it. I now run the enterprise dev firm I founded and never too on student debt. I find it hilarious that those of us who sacrificed and worked our asses off while going to cheap schools, and those who borrowed but paid or are paying their debt are going to pay for those who just signed up for a loan and went to expensive schools while

And 6K is still too much...

[gwolf]

Every time when a story about USA student loans pops up on Slashdot, I play back the WTF tape. How can a country not invest in its higher education? How come it has to be funded by the kids themselves? How come you have to start looking for a job with a debt amounting *years* of salary? It just does not make sense.
I live in Mexico. Yes, Latin America is not known for its great study levels or highest-in-the-world quality... but still, I am proud to be a university worker for >17 years already. I am a Com