OHIO — The federal government has forgiven over $17 billion so far in student loan debt, but keeping up with those adjustments could create more issues for colleges and universities.
What You Need To Know
- For many students, borrowing is the pathway to success
- The biggest problem right now is people who cannot pay their debts who didn’t complete their education
- Student loan forgiveness amendments may be a new burden, but colleges will still look for ways to make college affordable
Todd Jones, President of the Association of Independent Colleges and Universities, agreed, while it’s a relief for many, it’s not a permanent fix.
Jones said for many students, borrowing is the pathway to success. He said for most institutions in the association, nonprofit where students are receiving bachelor's or master's degrees, the job opportunities available to them make it possible to take on debt and pay it down.
"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 got their education at a for-profit college or in some place… a community college and they didn't complete it. Six months, a year and they quit. Now you've got student loan debt, and you have no benefit from the work to help pay it off.”
As some colleges consider amending 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 in fairness.
Keeping up with all the changes that are continuously made concerning student loan rules will continue to be the challenge.
“Reality for financial aid directors is, it's almost a constant world of change for them," Jones said. "Whether it be political administrations or changes in control of Congress, every few years, there are new burdens on them to identify ways to make college affordable."
Jones believes the rule changes could continue to happen each and fit into the flow of life for borrowers and financial aid directors.
