Clark Atlanta University President Cancels Student Debt

CAU announces debt relief for students via TwitterClark Atlanta University

ATLANTA - Clark Atlanta University President Dr. George T. French, Jr. announced on Friday that all student account balances from Spring 2020 through Summer 2021 will be cancelled. This initiative will eliminate any debt to the school that resulted in students’ attendance at Clark Atlanta from the Spring 2020 term through this year’s Summer term.

In a statement from the historically Black college or university (HBCU), Clark Atlanta University’s ability to forgive student debt is indicative of its “Momentum” initiative, an ideology that has allowed the university to secure a plethora of benefits that aid students during a particularly turbulent time financially.

"We understand these past two academic years have been emotionally and financially difficult on students and their families due to the COVID-19 pandemic. That is why we will continue to do all we can to support their efforts to complete their CAU education," said President French.

"Their academic and professional future is important to me and the entire Clark Atlanta University family. We care about students and want to lighten their individual and family's financial load so they can continue their journey in pursuing and attaining their educational and professional goals."

The zeroing of the student balances was made possible by the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, a $2.2 trillion economic stimulus bill signed into law by former president Donald Trump. The CARES Act resulted in the creation of the Higher Education Emergency Relief Fund (HEERF).

Under HEERF, Clark Atlanta University was able to forgive two years of student debt, and also undertake the following economic initiatives:

· the provision of emergency financial aid

· refunds of pro-rated amounts of housing and meal charges for Spring 2020

· discounted tuition and fees for the entire 2020-2021 academic year

· the purchase of 4,000 laptops from Dell Computers for every financially enrolled student

· the purchase of hotspots, to provide internet access to students with limited or no internet access in their homes

The cancelation of Clark Atlanta University students’ debt occurs as more voices call for partial or complete student loan forgiveness. Earlier this month, the U.S. Department of Education canceled the student loans of nearly 2,000 borrowers, totaling approximately $56 million. The forgiving of these loans brings the total amount of student loans initiated by the Biden Administration to over $1.5 billion.

On July 15, South Carolina State University, also an HBCU, forgave the indebtness of over 2,500 continuing students, resulting in more than $9.8 million in canceled student debt. The university also utilized the CARES Act as a means of eradicating the student debt, along with the American Rescue Plan Act of 2021.

There are agencies, however, that do not support the notion of student loan forgiveness. Granite State Management & Resources and FedLoan Servicing, who collectively manage the student loan accounts of 10 million borrowers, have elected to cancel their student loan servicing operations by the beginning of 2022. The departure of these two loan servicing agencies may significantly disrupt the ability of students to secure loans in the future.

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