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Surge in pandemic debt forgiveness is about students reenrolling — and also colleges’ bottom lines

August 11, 2021

Alexander Conyers became acting president at South Carolina State University on July 13. Two days later, the public historically Black university announced it would use federal relief funding to clear $9.8 million in debt that around 2,500 students owed to the university.

Most of the students enrolled at South Carolina State are financially vulnerable and might not be able to continue attending college if they can’t pay money they owe, Conyers said. More than 80% of first-time, full-time undergraduates at the university receive federal Pell grants, according to federal data. Pell eligibility is widely considered a proxy for low-income status.

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