Rev. Dr. Howard-John Wesley, Senior Pastor of Alfred Street Baptist Church.Alfred Street Baptist Church of Alexandria, Virginia, a prominent Black congregation located just outside Washington D.C., has donated $132,469 to Saint Augustine’s University (SAU) to eliminate the outstanding debt of 11 graduating seniors, enabling them to receive their diplomas debt-free at the May 3rd commencement ceremony.
The timely donation comes as SAU faces a litany of challenges, including an appeal to hold on to its accreditation.
The 222-year-old church, one of the nation’s oldest and largest predominantly African American congregations with approximately 13,000 members, has a long history of supporting historically Black colleges and universities (HBCUs). Church officials estimate about 60% of Alfred Street’s members are HBCU graduates themselves.
“This act of grace by Alfred Street Baptist Church is nothing short of transformative for our students and our institution,” said SAU Interim President Dr. Marcus H. Burgess. “We are immensely grateful for this demonstration of faith and partnership.”
The donation comes at a critical time when many small private colleges and HBCUs face financial challenges. The university had initially informed the entire graduating class that students with unpaid tuition balances could not participate in the commencement ceremony. While more than half of SAU’s graduating class managed to settle their balances independently, 11 students still needed assistance.
“This is what ministry looks like,” said Rev. Dr. Howard-John Wesley, Senior Pastor of Alfred Street Baptist Church. “We believe in investing in students, in HBCUs, and in a future where financial hardship should never be a barrier to graduation.”
This isn’t the first time Alfred Street Baptist Church has stepped up to support HBCU students. In 2019, the church raised $150,000 in a single weekend to pay off account balances for 34 graduating seniors at Howard University while also contributing $50,000 to assist Bennett College.
The connection between SAU and Alfred Street was nurtured by SAU alumni Gilbert and Carolyn Knowles, who are members of the church.
“When my wife and I discovered that our church, Alfred Street, approved the donation and the amount they would give to SAU, we cried tears of joy out of love for our church and our alma mater,” said Gilbert Knowles, a 1976 graduate.
For students like SGA President Tillia Leary, a graduating senior from The Bahamas majoring in accounting, the donation has been life changing. “This incredible act of kindness lifted a major burden and affirmed my belief in the power of community and faith,” said Leary, who plans to attend Ball State University for her master’s degree.
The timing of this gift coincides with SAU’s efforts to overcome recent challenges and chart a course forward. Representatives from Alfred Street Baptist Church will attend SAU’s commencement ceremony to celebrate with the students whose burdens they’ve helped lift.
While this donation covers 11 seniors’ debt, many other SAU students still face financial hurdles totaling approximately $230,000. The university is calling on others moved by the church’s act of philanthropy, to contribute to their student relief funds or scholarship programs.
Borrowers in default could see their tax refunds or other federal benefits withheld once collections resume.
J. David Ake/Getty Images
The Education Department will resume collecting on defaulted student loans early next month, restarting a system that’s been on hold since spring 2020, the agency announced Monday.
Starting May 5, the department will withhold tax refunds or benefits such as Social Security from borrowers who are in default. Later this summer, the department will begin garnishing the wages of defaulted borrowers, a move consumer protection advocates have criticized as out of control.
About 38 percent of the nearly 43 million student loan borrowers are current on their payments, and a record number of borrowers are at risk of or in delinquency and default, the department said Monday. Borrowers default when they miss at least 270 days of payments.
When the Biden administration restarted student loan payments in September 2023, it offered a one-year grace period for borrowers during which those who didn’t make payments were spared the worst financial consequences, including default.
Research into borrowers who default and other data shows they typically fall behind on their payments because other loans take a higher priority or they can’t afford their payments, among other reasons. And borrowers in default usually don’t have the ability to repay their loans. A survey from the Pew Charitable Trusts found that unemployed borrowers were twice as likely to default compared to those who worked full-time. Additionally, borrowers who didn’t complete the education they took out loans to pay for are more likely to default than completers.
“The folks who fall behind on their payments are those who are least well served by the higher education and repayment systems,” said Sarah Sattelmeyer, project director for education, opportunity and mobility in the higher education initiative at New America, a left-leaning think tank. “A lot of those folks did not receive a return on their higher education investment … These aren’t people who overwhelmingly do not want to pay their loans.”
About 5.3 million borrowers have defaulted on their loans, and many have been in default for more than seven years, according to the department. Another four million borrowers are in “late-stage delinquency,” or 91 to 180 days behind on their payments. The department expects about 10 million or nearly one-quarter of borrowers to default by the fall.
“We think that the federal student loan portfolio is headed toward a fiscal cliff if we don’t start repayment and collections,” a senior department official said on a press call Monday. “American taxpayers can no longer serve as collateral for student loans.”
The official didn’t take questions, and a department spokesperson referred reporters to Education Secretary Linda McMahon’s recent op-ed in The Wall Street Journal. She’s also slated to appear on CNBC and Fox Business to discuss the restart in collections.
In her public statements Monday, McMahon blamed the Biden administration and colleges for the current situation.
“Colleges and universities call themselves nonprofits, but for years they have profited massively off the federal subsidy of loans, hiking tuition and piling up multibillion-dollar endowments while students graduate six figures in the red,” she wrote in the Journal.
Beyond the immediate restart, the senior department official said the department is planning to work with Congress to fix the system so that students can afford their loan payments and to lower the cost of college.
Former Biden administration officials, borrowers and debt-relief advocates havesaid that efforts to forgive student loans were a way to address systemic failures in the student loan system and to help vulnerable borrowers who were likely to never repay their loans.
The department is planning a “robust communication strategy,” the senior official said, to spread the word to borrowers and share information about their options, such as enrolling in an income-driven repayment plan or loan rehabilitation.
Currently, about 1.8 million borrowers have pending applications for an IDR plan, but the department intends to clear that backlog over the next few weeks, the official said. The department also is planning to email borrowers individually about their options. The outreach plan also includes extending the loan servicers’ call center hours on weekends and weeknights.
Sattelmeyer, who worked in the Office of Federal Student Aid during the Biden administration, said it will be important to ensure borrowers have access to information and the tools such as IDR plans to either get out of or avoid default and then stay on track. She questioned whether the department has enough staff to restart collections effectively, given the recent mass layoffs at the agency.
“The issue is that the system is in disarray right now and there have not been a consistent set of options available for borrowers at the same time that we’re turning back on collections,” she said. “At the end of the day, I think the most important thing is that it does not feel like we have the resources and the staffing in place to make this go smoothly and to ensure that borrowers have support and access to resources and tools.”
Born in 1983 in the southern neighborhoods of Santiago, Chile, Francisco Tapia Salinas—better known as Papas Fritas—emerged as an influential figure in contemporary art despite having limited formal training. Tapia’s unconventional path led him to become an internationally recognized artist, but it was his provocative 2014 performance piece, Ad Augusta per Augusta (“To the Elevated by the Difficult”), that catapulted him to fame and solidified his place in the global art scene.
The title of the work was a direct reference to the motto of the now-defunct University del Mar, a private institution that had been shut down by Chile’s Ministry of Education. As the university’s closure left hundreds of students with substantial debt but no degree, Tapia was moved to take action. In an audacious statement of solidarity, he planned to “destroy the promissory notes and IOUs” that had burdened these students, who were trapped by years of financial obligations despite not completing their education.
On the day of the performance, Papas Fritas and a group of students seized the campus and stole documents worth over 500 million Chilean pesos (roughly equivalent to millions of dollars in student debt). The artist then set the documents on fire, offering the ashes as a powerful visual symbol of resistance and a rejection of the deeply privatized educational system. Tapia’s act of defiance was followed by his self-reporting to the authorities.
In a poignant five-minute video shared widely, Tapia declared, “It’s over, it’s finished. You don’t have to pay another peso of your student loan debt. We have to lose our fear, our fear of being thought of as criminals because we’re poor. I am just like you, living a shitty life, and I live it day by day — this is my act of love for you.” His words resonated deeply, especially among the university’s students, who were legally able to disavow their debts as a result of his intervention.
The minimal legal consequences Tapia faced in light of local legislation underscored the paradox of a system that prioritizes privatization over the well-being of its citizens. His artistic intervention, which boldly confronted both the educational establishment and Chile’s deeply entrenched financial inequities, has since been hailed as an iconic piece of contemporary Chilean art.
Ad Augusta per Augusta remains a testament to Tapia’s unflinching commitment to social justice, and his work continues to provoke discussions on the intersection of art, activism, and the privatization of education in Latin America.
As more students and parents consider the value of higher education and the cost of a four-year degree, interest has grown in three-year degree opportunities that allow students to complete their education in less time for a lower tuition rate.
Westminster College in Pennsylvania launched a new Degree in Three program in the School of Business this year, allowing learners to graduate with 125 credits and shave a year off their time in undergraduate education. Additionally, the program pairs with the college’s master of business administration, so learners can complete two degrees in four years if they so choose.
The background: There were a few catalysts for creating a formal three-year degree program, explains Robert Badowski, Westminster’s school of business chair. First, more students were coming in with credits from high school from AP or dual-enrollment programs, making their degree progress quicker. Second, more students and parents had noted the high cost of education and concerns about student debt.
A May 2024 Student Voice survey by Inside Higher Ed and Generation Lab found seven in 10 respondents say higher education institutions in general charge too much for an undergraduate education.
Westminster isn’t the only college facing pressure to get students to graduation sooner: Interest in formalized three-year degree programs has grown in recent years, and more institutions are looking to get in the game, even medical schools.
At Westminster, the college had helped students shape their own schedules to graduate in three years rather than four, but a curriculum review and restructuring of elective courses has helped make this accessible to all students.
What’s different: Westminster students can take up to 19 credit hours per semester and be considered full-time, but the business program offered primarily four-credit courses, making it difficult for students to max out their credit load.
“You could take four classes, but if you took the fifth class, you were paying extra money, and most students don’t want to take on that burden, even if it was cutting off a year,” Badowski explains.
Many three-year degree programs reduce the total number of credits students have to complete, but Westminster accelerated business students still complete at least 125 credits. To do so, faculty members reimagined their four-credit elective courses to be worth either one or two credits instead.
Now, instead of engaging in a deep dive into an elective topic, students receive greater breadth in a variety of areas and are able to hit that 19-credit threshold exactly.
“We had a meeting [with faculty members] as far as which courses made sense to do this with, and we found out in the process that a lot of [content] was stretched out purposefully just to be stretched out,” Badowski says. The process of removing content or packing it into seven or eight weeks, therefore, made more sense in many cases.
The restructuring of elective courses is something that will benefit all business students, not just those participating in the accelerated degree program, giving them greater flexibility in scheduling.
BOGO deal: In addition to removing costs associated with attending college, the Degree in Three program allows students to pair their undergraduate and graduate degrees in a four-year timeline.
“We have a pretty neat deal that if students want to take one of their M.B.A. classes the last semester of their senior year, they can,” Badowski says. “We don’t charge for the M.B.A. course, so that gets them kind of jettisoned into the program.”
The offering is particularly attractive to student athletes at the college, many of whom want to use all four years of eligibility.
The price of an M.B.A. at Westminster is also around $10,000, so students spend less for a three-plus-one M.B.A. degree than four years in their undergraduate program, Badowski says.
What’s next: Administrators are working on creating awareness of the offering among prospective students and particularly parents, who “are going to look at this and hopefully go, ‘I can help my kids save a year of tuition, maybe get them out of college a year faster,’” Badowski says.
The college doesn’t have specific goals for enrollment, but Badowski would like to see 20 in the first year and consistent growth after that. “I’m hoping that people find it useful for them, [because] they’re still getting the same amount of credits. They’re taking the same classes as everybody else, it’s just faster.”
Get more content like this directly to your inbox. Subscribe here.
Hi all. Just a quick one today, this time on some data I recently got from StatsCan.
We know a fair a bit about student debt in Canada, especially with respect to distribution by gender, type of institution, province, etc. (Chapter 6 of The State of Postsecondary Education in Canada is just chock full of this kind of data if you’re minded to take a deeper dive). But to my knowledge no one has ever pulled and published the data on debt by ethnicity, even though this data has been collected for quite some time through the National Graduates Survey (NGS). So I ordered the data, and here’s what I discovered.
Figure 1 shows incidence of borrowing for the graduating class of 2020, combined for all graduates of universities and graduates, for the eight largest ethnicities covered by the NGS (and before anyone asks, “indigeneity” is not considered an ethnicity so anyone indicating an indigenous ethnicity is unfortunately excluded from this data… there’s more below on the challenges of getting additional data). And the picture it shows is…a bit complex.
Figure 1: Incidence of Borrowing, College and University Graduates Combined, Class of 2020
If you just look at the data on government loan programs (the orange bars), we see that only Arab students have borrowing rates in excess of 1 in 2. But for certain ethnicities, the borrowing rate is much lower. For Latin American and Chinese students, the borrowing rate is below 1 in 3, and among South Asian students the borrowing rate is barely 1 in 5. Evidence of big differences in attitudes towards borrowing!
Except…well when you add in borrowing from private sources (e.g. from banks and family) so as to take a look at overall rates of borrowing incidence, the differences in borrowing rates are a lot narrower. Briefly, Asian and Latin American students borrow a lot more money from private sources (mainly family) than do Arab students, whites, and Blacks. These probably come with slightly easier repayment terms, but it’s hard to know for sure. An area almost certainly worthy of further research.
There is a similarly nuanced picture when we look at median levels of indebtedness among graduates who had debt. This is shown below in Figure 2.
Figure 2: Median Borrowing, College and University Graduates Combined, Class of 2020
Now, there isn’t a huge amount of difference in exiting debt levels by ethnicity: the gap is only about $6,000 between the lowest total debt levels (Filipinos) and the highest (Chinese). But part of the problem here is that we can’t distinguish the reason for the various debt levels. Based on what we know about ethnic patterns of postsecondary education, we can probably guess that Filipino students have low debt levels not because they are especially wealthy and can afford to go to post-secondary without financial assistance. But rather because they are more likely to go to college and this spend less time, on average, in school paying fees and accumulating debt. Similarly, Chinese students don’t have the highest debt because they have low incomes; they have higher debt because they are the ethnic group the most likely to attend university and spend more time paying (higher) fees.
(Could we get the data separately for universities and colleges to clear up the confound? Yes, we could. But it cost me $3K just to get this data. Drilling down a level adds costs, as would getting data based on indigenous identity, and this is a free email, and so for the moment what we have above will have to do. If anyone wants to pitch in a couple of grand to do more drilling-down, let me know and I would be happy to coordinate some data liberation).
It is also possible to use NGS data to look at post-graduate income by debt. I obtained the data by in fairly large ranges (e.g. $0-20K, $20-60K, etc.), but it’s possible on the basis of that to estimate roughly what median incomes are (put it this way: the exact numbers are not exactly right, but the ordinal rank of income of the various ethnicities are probably accurate). My estimations of median 2023 income of 2020 graduates—which includes those graduates who are not in the labour market full-time, if you’re wondering why the numbers look a little low—are shown below in Figure 3.
Figure 3: Estimate Median 2023 Income, College and University Graduates Combined, Class of 2020
Are there differences in income here? Yes, but they aren’t huge. Most ethnic groups have median post-graduate incomes between $44 and $46,000. The two lowest-earning groups (Latin Americans and Filipinos) re both disproportionately enrolled in community colleges, which is part of what is going on in this data (if you want disaggregated data, see above).
Now, the data from the previous graphs can be combined to look at debt-to-income ratios, both for students with debt, and all students (that is, including those that do not borrow). This is shown below in Figure 4.
Figure 4: Estimated Median 2023 Debt-to-Income Ratios, College and University Graduates Combined, Class of 2020
If you’re just dividing indebtedness by income (the blue bars), you get a picture that looks a lot like Figure 2 in debt, because differences in income are pretty small. But if you are looking at debt-to-income ratios across all students (including those that do not borrow) you get a very different picture because as we saw in Figure 1, there are some pretty significant differences in overall borrowing rates. So, for instance, Chinese students go from having the worst debt-to-income ratio on one measure to being middle of the pack on another because they have relatively low incidence of borrowing; similarly, students of Latin American origin go from being middle-of-the-pack to nearly the lowest debt-to-income ratios because they are a lot less likely to borrow than others. Black students end up having among the highest debt-to-income ratios not because they earn significantly less than other graduates, but because both the incidence and amount of their borrowing is relatively high.
But I think the story to go with here is that while there are differences between ethnic groups in terms of borrowing, debt, and repayment ratios, and that it’s worth trying to do something to narrow them, the difference in these rates is not enormous. Overall, it appears that as a country we are achieving reasonably good things here, with the caveat that if this data were disaggregated by university/ college, the story might not be quite as promising.
And so ends the first-ever analysis of student debt and repayment by ethnic background. Hope you found it moderately enlightening.
The fight for student loan borrowers continues! In the last remaining days of the Biden-Harris Administration, the U.S. Department of Education (ED) is pushing some final relief through for student loan borrowers, new Income-Driven Repayment (IDR) Account Adjustment payment counts are live, and we have new fact sheets shedding light on the impact of the student debt crisis on borrowers.
Here’s a roundup of the latest:
Over 5 million borrowers have been freed from student debt.
In a major win for borrowers, ED announced that the Biden-Harris Administration has now approved $183.6 billion in student debt discharges via various student debt relief fixes and programs. This relief has now reached over 5 million borrowers and includes new approvals for Public Service Loan Forgiveness (PSLF) relief, borrower defense relief, and Total and Permanent Disability Discharge relief.
This relief is life-changing for millions of families, proving the power of bold, decisive action on student debt. Yet, there is much more work to do. Every step toward relief underscores the need to continue fighting for policies that reduce the burden of student debt and ensure affordable access to higher education.
Final phase of the IDR Account Adjustment is underway—take screenshots!
In tandem with the latest cancellation efforts, ED has also finally started updating borrower payment counts on the Federal Student Aid dashboard. Providing official payment counts will help borrowers receive the credit they have earned towards cancellation under IDR, and ensure that all borrowers who have been forced to pay for 20 years or longer are automatically able to benefit from relief they are entitled to under federal law. ***If you are a borrower with federal student loans, we recommend that you check your dashboard on studentaid.gov, screenshot your new count, and save it in your records.
Previously, many borrowers—including those who work in public service jobs and low-income borrowers struggling to afford payments—were steered into costly deferments and forbearance, preventing them from reaching the 20 years or longer for IDR relief or the 120 payments necessary for PSLF cancellation. Under the IDR Account Adjustment, these periods are now counted, even if borrowers were mistakenly placed in the wrong repayment plan or faced servicing errors.
President Biden has so far forgiven $180 billion in student loans for 4.9 million borrowers. Much more relief is unlikely now.
Andrew Caballero-Reynolds/AFP via Getty Images
The Biden administration’s ambitious plans to provide debt relief for millions of Americans is officially dead along with a number of other proposed regulatory changes.
The administration said Friday it’s withdrawing two debt relief proposals from consideration. The Education Department had been reviewing thousands of comments on the plans and preparing to finalize at least one proposal before Friday’s announcement. The Associated Press first reported on the decision.
The department is also scraping its proposal to amend Title IX to prohibit blanket bans barring transgender students from participating in the sport consistent with their gender identity. That proposal proved controversial, receiving more than 150,000 comments and prompting legal challenges to the department’s separate overhaul of Title IX. added
“In light of the comments received and those various pending court cases, the department has determined not to regulate on this issue at this time,” officials wrote in a notice on the Federal Register. added
The department also said Friday that it’s abandoning the effort to update the rules for accreditation, state authorization and cash management. Regulatory proposals were hashed out in the spring but have stalled since. Proposals to gather more data about distance education and open up college-prep programs to undocumented students appear to be moving forward. added
The department said terminating the rule-making process or those three areas will “allow for additional evaluation of recent changes in other regulations and industry practices.” added
The debt relief plans have been in the works since summer 2023 after the Supreme Court struck down President Biden’s first attempt at providing student loan forgiveness. Republicans and other critics said these latest debt relief plans, which would have benefited 36 million Americans, were unconstitutional and amounted to an unfair wealth transfer.
Education Department officials maintain that they have the authority to forgive student loans for borrowers who meet certain criteria or are facing financial hardship, but they concluded that they don’t have the time to implement the proposals before Biden leaves office Jan. 20.
“With the time remaining in this administration, the Department is focused on several priorities including court-ordered settlements and helping borrowers manage the final elements of the return to repayment,” officials wrote in a Federal Register notice. “At this time the Department intends to commit its limited operational resources to helping at-risk borrowers return to repayment successfully.”
Withdrawing the rule “will assure agency flexibility in reexamining the issues,” officials added. The move means that the incoming administration would have to start from scratch on a rulemaking process rather than just rewrite the pending proposal.
Some Republican attorneys general sued the administration over one of the plans, which would have provided targeted debt relief to borrowers who owe more than they initially borrowed or have been repaying their loans for more than 20 years, among other groups. That plan was blocked by a federal judge before the department could finalize it.
The department’s decision came on the same day the Biden administration announced another round of loan forgiveness. The Education Department announced Friday morning that it would forgive loans for 55,000 borrowers who reached eligibility through Public Service Loan Forgiveness. A program created in 2007 and retooled under Biden, PSLF relieves an individual’s remaining debt if they properly complete 120 monthly payments while working full-time in a public interest career like law enforcement, health care or education.
Including Friday’s batch of relief, which totaled $4.28 billion, the Biden administration has now forgiven $180 billion in student loans for 4.9 million borrowers.
Borrower advocacy groups like the Student Borrower Protection Center say that while they are deeply disappointed the Biden administration has to withdraw its regulations in response to legal pushback from right-wing attorneys, they appreciate Biden’s efforts and celebrate the regulations he was able to finalize.
“President Biden’s fixes to the Public Service Loan Forgiveness program and other student loan relief programs have once again delivered lasting change and will benefit millions of borrowers for years to come,” said Persis Yu, deputy executive director of the Student Borrower Protection Center, in a statement. But, at the same time, Yu added that “the actions of right-wing attorneys general have blocked tens of millions of borrowers from accessing critical student debt relief.”
Meanwhile, Republican lawmakers, including Senator Dr. Bill Cassidy of Louisiana, described Biden’s unfinalized attempts at student debt relief as a “scheme to transfer student debt onto American taxpayers.”
“The Biden-Harris administration’s student loan schemes were always a lie,” the senator said in a statement. “With today’s latest withdrawal, they are admitting these schemes were nothing more than a dishonest attempt to buy votes by transferring debt onto taxpayers who never went to college or worked to pay off their loans.”
