Cancellation of student loans could create more challenges

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OHIO — The federal government has forgiven more than $17 billion in student loan debt so far, but tracking those adjustments could create more problems for colleges and universities.


What do you want to know

  • For many students, borrowing is the path to success
  • The biggest problem right now is people who can’t pay their debts and haven’t finished school
  • Student Loan Forgiveness Amendments May Be New Burden, But Colleges Will Always Look For Ways To Make College Affordable

Todd Jones, president of the Association of Independent Colleges and Universities, agreed that while it’s a relief for many, it’s not a permanent fix.

Jones said for many students, borrowing is the path to success. He said that for most of the association’s institutions, which are nonprofits where students receive a bachelor’s or master’s degree, the employment opportunities available to them allow them to go into debt and pay it off.

“The biggest problem right now is people who are unable to pay their debts and most of those people actually owe very little money,” Jones said. “They went to a for-profit college or some place…a community college and, ‘They didn’t finish it. Six months, a year and they stopped. Now you have student loan debt and you have no work benefits to help pay it off.”

While some colleges consider changing their own student loan programs to help, Jones believes colleges will continue to make college as affordable as possible and try to focus on completion and equity.

Keeping abreast of all the constantly changing student loan rules will continue to be a challenge.

“The reality for financial aid managers is that it’s almost a world of constant change for them,” Jones said. affordable college.”

Jones thinks the rule changes could continue to happen each and become part of the lifestream of borrowers and financial aid directors.

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