Why Talk of Student-Debt Cancellation Is Creating Headaches for Colleges

"After years stuck in limbo, the idea of widespread federal-student-loan cancellation has suddenly picked up momentum over the past week. But with the details yet to be determined, colleges are struggling to explain to current students what debt forgiveness could mean," The Chronicle of Higher Education reports.

..."Meanwhile, some advocates remain concerned that the national discussion has not included ways to solve student debt on a more structural level for future students and borrowers.

'Forgiveness by presidential fiat is not sustainable or good public policy,' said Justin Draeger, president and chief executive of the National Association of Student Financial Aid Administrators, whose members have been dealing with a deluge of questions from students and their families about whether they might be eligible for student-loan forgiveness.

While targeted loan forgiveness is welcome news for today’s borrowers, Draeger said, it does nothing to help next year’s. 'Loan forgiveness has to come with rethinking some of our national student-loan policies,' he said. 'I see very little on that. That’s where the rubber meets the road for institutions, for financial-aid offices.'"

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Publication Date: 5/3/2022

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