The Biden administration is forgiving over $6 billion in student debt for former students of The Art Institutes. The schools misled students about job prospects and salaries. This automatic relief affects 317,000 borrowers who enrolled between 2004 and 2017. The schools falsified data, including using Serena Williams' income to inflate salary expectations.
President Biden has proposed making community college tuition-free nationwide, believing it's a better way to tackle college affordability than student loan forgiveness. While a federal plan isn't underway yet, 35 states have implemented programs to cover remaining tuition after financial aid. New Mexico's Opportunity Scholarship stands out for extending benefits to adult learners and immigrants, and has seen a significant increase in college enrollment since its launch.
The Biden administration has released the proposed rules for its revised student loan forgiveness plan. It could reduce or eliminate debt for certain borrowers, including those eligible for existing cancellation programs, in long-term repayment, at questionable schools, or in financial hardship. Borrowers may also get up to $20,000 of unpaid interest forgiven. The plan is still subject to public comment and will likely be finalized and implemented in the fall.
For the second year in a row, fewer students earned college degrees, a trend fueled by rising costs and student debt. Despite this decline, more students than ever earned certificates. This suggests a shift towards shorter-term and vocational programs, as students prioritize job training over traditional four-year degrees. The decline in degrees is also attributed to the ongoing pandemic, a problematic FAFSA process, and state funding cuts for higher education.
President Biden announced a revised plan to forgive student loans, which will benefit tens of millions of Americans. This plan is narrower than his original effort, but it targets specific borrowers with financial hardship or those who have been in repayment for a long time. The revised plan aims to forgive up to $20,000 of unpaid interest for borrowers and could erase or reduce balances for many. Biden hopes this effort will survive legal challenges and help address the burden of student debt in the country.
Due to technical issues, financial aid awards for college students are delayed, causing uncertainty about next year's decisions. Students may consider applying for private scholarships to reduce college expenses. This delay provides an opportunity to carefully consider college options beyond financial aid. Exploring major choices and potential earnings can help make informed decisions. Utilizing resources like the college scorecard and net price calculators can aid in assessing affordability. By researching and applying for scholarships, students can potentially cover a significant portion of college costs.
