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Why Community Colleges Are Using Their COVID Relief Funds to Erase Student Debt

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Community colleges across the country are leveraging federal coronavirus relief dollars to forgive student debt accrued during the pandemic, a move some administrators hope will stanch continuing enrollment declines at the two-year institutions.

The money, available through both the and the more recent allows eligible colleges to wipe out student debt and provides grants directly to students in need. At El Paso Community College in Texas, for example, administrators for roughly 4,700 students over the summer using CARES Act funding, then encouraged eligible students to via allocations from ARPA.

鈥淪tudents have been adversely affected by the pandemic and we want them to be able to stay on their path to completing their degree,” Keri Moe, the college鈥檚 associate vice president of external relations, communication and development, said in a statement. 鈥淲e want to help students find the resources to emerge from the pandemic, regain financial stability and to be able to continue to pursue their dreams.”

Other two-year colleges have announced similar measures. Connecticut State Colleges and Universities, a 17-campus system with a mix of two- and four-year colleges, said in July it would that community college students 鈥渢ook on or could not repay because of the pandemic.鈥 The policy will impact more than 18,000 students, with no strings attached and no requirement that recipients enroll in classes in the future.

鈥淐ommunity college students have been hit especially hard by COVID-19,鈥 Terrence Cheng, the system鈥檚 president, said in a statement. 鈥淏y eliminating the debt those students owe to institutions, we are removing a hurdle that prevents far too many people from continuing their educational journeys..鈥

Enrollment Still Falling

Enrollment at community colleges has suffered throughout the pandemic, with numbers continuing to slide despite widespread vaccine availability. Spring enrollment at two-year institutions nationwide declined by 9.5% this spring, with roughly 476,000 fewer students than the same time in 2020, according to released last month. Among all institutions of higher learning, community colleges accounted for more than 65% of undergraduate enrollment losses, according to the data.

The continuing decline is a concern for community colleges, which typically see enrollment increases during recessions as unemployed workers return to school to learn new skills. But the pandemic proved difficult for to weather, as many come from low-income backgrounds, are first-generation learners and often attend school while juggling work and dependent care 鈥 all populations that were disproportionately affected by COVID-19.

鈥淭hey lost jobs, suffered food insecurity, and lacked access to vital services 鈥 to say nothing of the devastating harm caused to those afflicted with the virus,鈥 Dr. Jane Gates, provost and senior vice president of academic and student affairs at Connecticut State Colleges and Universities, said in a statement. 鈥淚t is no wonder that so many students saw the debt they owed to our colleges pile up.鈥

, the and in Paramus, New Jersey, have also announced plans to use federal dollars to cancel debt. In most cases, students鈥 accounts are wiped automatically, with no application process or other action necessary.

鈥淔inancial concerns often present the most significant barrier to earning a college degree鈥攅specially given the pandemic鈥檚 effect on the finances of our students,鈥 Eric M. Friedman, president of Bergen Community College, said in a statement. 鈥淏y erasing past-due tuition, students can return…to continue their path to a degree without debt hanging over their heads.鈥

Four-year colleges have also utilized relief money to erase debt, including , and , all .

鈥淭his is a tremendous weight I won鈥檛 have to carry,鈥 Romaun Myers, one of more than 2,500 South Carolina State students to have debt cleared, told the university in a statement. 鈥淚鈥檓 a first-generation college student, one of the only boys on my mom鈥檚 side of the family. I have to make it so I can provide for my family.鈥

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