Unpaid Tuition Debt Collection Forgiveness to Support Students and Universities

Unpaid tuition debt collection forgiveness is a crucial step in supporting students and universities. The average student loan debt in the US is over $31,300.

For many students, the burden of unpaid tuition debt can be overwhelming, leading to financial stress and anxiety. This can affect their mental health, relationships, and overall well-being.

The total outstanding student loan debt in the US is over $1.7 trillion, with over 44 million borrowers. This debt can also impact universities, as they may struggle to attract top talent and fund their programs.

Forgiving unpaid tuition debt can have a positive impact on both students and universities, allowing them to focus on their education and research rather than debt repayment.

CUNY students and recent graduates who owe unpaid tuition and fees will have their official transcripts released, allowing them to pursue employment and additional educational opportunities.

Students who lost their jobs and faced housing and food insecurity due to COVID-19 are being given a break, with outstanding tuition and fee balances being erased.

The policy change was implemented by Chancellor Matos Rodríguez, aiming to ensure equity for students disproportionately impacted by the pandemic.

Students enrolled at a CUNY college between March 13, 2020, and the end of the Spring 2021 semester are eligible for forgiveness of outstanding balances owed to CUNY.

Here are the criteria for automatic forgiveness:

Eligible students will receive a notification letter to their preferred CUNY email, and their eligible outstanding tuition and fees balances will be automatically discharged.

A fresh viewpoint: Will Paying off Debt in Collections Help My Credit Score

The CUNY Comeback Program is a game-changer for students who struggled during the pandemic. Chancellor Matos Rodríguez implemented a policy change allowing students and graduates who owe unpaid tuition and fees to receive their official transcripts, which will aid in their ability to pursue employment and additional educational opportunities.

Many students lost their jobs and faced housing and food insecurity due to COVID-19, making it difficult to focus on their education. Erasing outstanding tuition and fee balances will give them a fresh start.

Students enrolled at a CUNY college between March 13, 2020, and the end of the Spring 2021 semester are eligible for forgiveness of outstanding balances owed to CUNY. This includes recent graduates and students who dropped out after taking classes during this time.

To be eligible, students must meet one of the following criteria:

Eligible students will receive a notification letter to their preferred CUNY email and will have their eligible outstanding tuition and fees balances due to CUNY automatically discharged.

The financial burden of unpaid tuition debt can be overwhelming. According to the Federal Reserve, outstanding student loan debt in the United States has surpassed $1.7 trillion.

Many borrowers struggle to make payments, with 11% of student loan borrowers making payments of over $100 per month, but still owing over $50,000. This is particularly concerning for those who have been affected by the COVID-19 pandemic, with 25% of borrowers reporting a decrease in income due to the pandemic.

In 2019, the total amount of student loan debt discharged through bankruptcy was just $6 million. This is a tiny fraction of the total outstanding debt, highlighting the challenges borrowers face in getting relief.

The average student loan debt per borrower is $31,300, with 53% of borrowers owing between $10,000 and $50,000. These figures underscore the need for effective debt forgiveness programs.