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Historically Black university cancels $730k in student debt using COVID-19 relief funds

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Delaware State University recently announced they were canceling more than $730,000 in debt for recent graduates who experienced financial difficulties during the pandemic.

The historically Black public university will be giving morethan 220 students an average of $3,276 to help with student debt.

The money is coming from the American Rescue Plan, the nearly $2 trillion relief plan passed earlier this year.

“Too many graduates across the country will leave their schools burdened by debt, making it difficult for them to rent an apartment, cover moving costs, or otherwise prepare for their new careers or graduate school. While we know our efforts won’t help with all of their obligations, we all felt it was essential to do our part,” Antonio Boyle, Vice President for Strategic Enrollment Management, said in a written release.

Canceling or forgiving student debt has come up several times since President Joe Biden was elected, with some Democrats calling for him to relieve up to $50,000 in debt.

Sens. Chuck Schumer and Elizabeth Warren say relieving student debt can “substantially increase Black and Latinx household wealth and help close the racial wealth gap,” citing research from the Roosevelt Institute.

Biden has asked the Department of Education to look into the idea, and their recommendation has not been made public at this time.