Dallas College Cancels Student Debt That Was Owed to the Institution for 14,000 Students

Student graduation

Dallas College located in Dallas, Texas, canceled student debt that was owed to the college for a total of 14,000 students in the past year, using the federal government’s Emergency Fund For Colleges dedicated to assisting students amid the COVID-19 pandemic.

The Associate Vice Chancellor of Enrollment Management at Dallas College, Marisa Pierce, said that by clearing the balances, students would be provided with much-needed relief, adding the college hopes that by removing this barrier, students will be able to achieve 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,” Pierce said.

In addition to Dallas College, there are other higher education institutions that have canceled student loans, including America’s oldest private historically black university, Wilberforce University, which has recently canceled all student loan debt and fines owed to the institution from 2020-2021 classes.

Furthermore, the public historically black university, Delaware State University, last month canceled up to $730,655 in student loan debt for over 220 recent graduates who were financially affected by the pandemic during the year. The university also used the funds from the American Rescue Plan.

Although several proposals on canceling student loan debt have been made, including canceling up to $50,000 of student loans, students remain uncertain whether they will all receive student loan forgiveness. Based on the latest proposals, there are some students who might not be eligible for student loan cancellation, including:

  • Students who have private student loans.
  • Students earning more than $125,000 a year.
  • Those studying through Parent Loans.
  • Student borrowers with FFELP Loans or Perkins Loans. 

Despite several universities and colleges canceling student loans for their students, employers can also help the latter to pay off their student loans. Under the $2.2 trillion stimulus package – The Cares Act, employers can make tax-free payments for an amount of $5,250 per employee for both private and federal student loans.

As per students who did not get their student loan canceled from their university or college, there are some options they might consider to pay off their loans, including student loan refinancing, income-driven repayment plans, public service loan cancellation.

Most recently, data obtained by the National Student Legal Defense Network (NSLDN) through a Freedom of Information Act request have shown that more than 517,000 student loan borrowers carrying over $8 billion student debt have not received any discharge since June 10, they are eligible for the cancellation though.

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