U.S. Education Secretary Miguel Cardona told a group of Arkansas educators Tuesday that the goal of the Biden administration鈥檚 鈥渋s to prevent defaults.鈥�

鈥淲hich is better, letting someone pay what they can afford or throwing our hands up and doing nothing?鈥� Cardona asked during a roundtable discussion with nine teachers and others at Arkansas Education Association headquarters near the state Capitol in Little Rock.

Cardona also acknowledged delays and problems with the rollout of a streamlined Free Application for Federal Student Aid process, but said, 鈥淚t鈥檚 working now.鈥� He encouraged students and parents to fill out the online application.

鈥淚 helped my own kid fill it out and it took only 15 to 20 minutes,鈥� he said, comparing it to the hour or more needed to fill out the old form.

Arkansas Education Secretary Jacob Oliva and Gov. Sarah Huckabee Sanders didn鈥檛 meet with Cardona. Sanders and Oliva sent to Cardona on Monday criticizing him, Biden and the U.S. Department of Education.

鈥淵our department is a constant source of frustration for Americans and Arkansans,鈥� Sanders and Oliva said in their letter. 鈥淵ou oppose education freedom.鈥�

They wrote that the president鈥檚 latest student loan forgiveness plan 鈥渋s unfair, unwise and unlawful.鈥�

Regarding FAFSA, the governor and her education chief said 鈥渟tudents, particularly from low-income families, need answers.鈥�

鈥淪tate government needs clarity,鈥� they wrote, noting that officials are scholarships to ensure students know they鈥檒l receive their state scholarships.

Addressing the governor鈥檚 comments after the meeting with educators, Cardona said, 鈥淚 want to work with the governor. I know that she鈥檚 probably been working a lot too. Let鈥檚 work together and make sure it happens.鈥�

Referring to Sanders鈥� signature education legislation, , that raised teacher salaries and created tutoring programs, Cardona said, 鈥淚鈥檓 glad to see some of the provisions of the recent legislation but there鈥檚 still a lot of work to do. I think we can go farther for the students of Arkansas if we work together.

鈥淲e need to help our educators. We need to serve our students. We do it better when we do it together,鈥� he said.

鈥淚t鈥檚 one thing to send a letter to me, but tell that to teachers who鈥檝e been working 20 years and can鈥檛 afford to buy a home. We鈥檙e trying to bring people into the profession,鈥� he said, noting that many borrowers who will benefit from the loan forgiveness plan are teachers.

He urged students and their parents not to be deterred from filing out the FAFSA form.

鈥淚 know it鈥檚 been frustrating, but the bottom line is it鈥檚 working now. So if you haven鈥檛 applied yet, do it now. We know there鈥檚 potentially 600,000 more students that can access federal aid that couldn鈥檛 before with the old system,鈥� he said.

He noted that his department has received 26% fewer federal aid applications from Arkansas than last year.

鈥淲e want to do everything we can to get those applications in,鈥� he said. 鈥淚t should be quicker. The process makes it easier to access more federal dollars.鈥�

Cardona said an intense push by officials last week resulted in hundreds of thousands of students sending in their applications.

鈥淎nd those students who did, their colleges already have the information. The goal now is to get the word out it鈥檚 up and running,鈥� he said.

After the meeting at AEA headquarters, Cardona visited Central High School where students participated in a clinic about the new financial aid application.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com. Follow Arkansas Advocate on and .

WASHINGTON 鈥� U.S. Senate Republicans on Wednesday night failed to garner enough votes to block a new Biden administration rule on an income-driven repayment plan for federal student loans.

is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. Contact Editor Sonny Albarado for questions: info@arkansasadvocate.com. Follow Arkansas Advocate on and .

As a first-generation college graduate from South Texas, Priscilla Lugo believed a degree was the key to financial stability and independence.

鈥淢y parents didn’t go to college and [I was] always being sold this [idea], 鈥榞o to school and you’ll get everything you’ve ever needed, you’ll have everything you will need to take care of yourself,鈥欌�欌�� she said.

But her undergraduate degree and two master鈥檚 degrees from The University of Texas at Austin came with a high price tag 鈥� despite receiving financial aid and scholarships, Lugo ended up with $30,000 in student loan debt.

Now, as payments on her student loans resumed this month and she braces for the financial adjustments she鈥檒l have to make, Lugo said she鈥檚 鈥渞eally feeling lied to and misled.鈥�

A pause on federal student loan interest ended Sept. 1, nearly four years after former President Donald Trump provided borrowers with relief in response to the COVID-19 pandemic. President Joe Biden extended the pause after his campaign promised to help millions of borrowers with crushing student debt if elected. But any hopes for extended relief were dashed after the.

The Texas Tribune asked readers to share their stories of how they benefited from the student loan repayment pause, and how resuming payments will impact their finances. Some said the pause allowed them to contribute funds to their retirement and savings accounts for the first time; others said resuming payments means they will need to get a second job to be able to afford rent, utilities and groceries.

Having to resume payments on her loans worries Lugo, who works in Austin at a Latino civil rights nonprofit. She said her already limited savings will likely diminish to make ends meet and she worries she鈥檒l never be able to afford a home or have enough money in the bank for an emergency.

鈥淚t is stressful because I know my credit card debt will go up, especially with the rate of inflation and rising cost of living,鈥� Lugo said. 鈥淚 already worry that I am not putting enough money into my retirement fund to sustain my future. I worry about what this will do for not only my immediate future, but the long-term future.鈥�

Lugo said she feels misled by the Biden administration, which promised student loan relief to the millions of borrowers across the country like her. Despite applying for an 鈥� which considers an individual鈥檚 household income to calculate their monthly loan payment amount 鈥� Lugo said making payments will still put her in a tough spot financially. In addition to a tight budget, Lugo said the burden of researching and understanding complex student loan debt repayment plans has fallen on her with no clear communication or assistance from her loan provider.

Taylor Kidd, who lives in Houston and graduated with about $40,000 in student debt after receiving his undergraduate and graduate degrees, said unanswered questions and confusing directions have made the process of paying off his student loans frustrating and anxiety-inducing, even though he and his partner are financially able to pay off their loans.

鈥淚’m appreciative [of loans], but I really don’t think I should spend the rest of my life not owning a home or not being able to save for retirement,鈥� he said.

In talking with neighbors and friends who have paid off their student loans, Kidd said he has noticed a lack of compassion toward those still struggling to pay them off. Some critics of student loan forgiveness worry that providing relief to borrowers would exacerbate inflation by putting more money in their pockets for high-ticket goods, though loan experts believe . Others simply say borrowers should take responsibility for their loans and not expect help from taxpayers.

The cost of higher education in Texas and across the country has increased in recent years. A released last year by the Texas Higher Education Coordinating Board shows a 鈥渟ubstantial amount of unmet financial need among Texas residents attending Texas institutions of higher education.鈥�

The report found that 73% of undergraduate and graduate students who demonstrated need received aid, while 7% of students who demonstrated need did not receive it. Additionally, the report found that financial aid might not be going to the students who need it the most, with 20% of students receiving aid despite not having demonstrated a need for it.

Even though most students in need receive some level of financial aid, undergraduate students attending public universities in 2021 had an average of $12,947 in unmet needs 鈥� over half of the average cost to attend college, according to the report.

Linda Richards, a therapist who lives outside of Houston, graduated with $38,000 in student loan debt after earning her undergraduate and graduate degrees from the University of Illinois in 2001.

Decades later, she has paid nearly double what she initially borrowed 鈥� something she blames on the high-interest rate attached to her loans. Richards applied for the income-based repayment plan announced by Biden in August, but because the plan takes into account the borrower鈥檚 entire household income and her husband鈥檚 income is higher than hers, her monthly loan payments have actually increased significantly.

Richards, 59, paid off her credit card debt during the repayment pause and directed the money she saved into her retirement account. As repayments resume with increases to her payment requirements, Richards said she won鈥檛 be able to save for retirement anymore.

鈥淚t’s kind of scary knowing I鈥檓 probably not going to be able to retire,鈥� she said.

Tanya Garcia with the Institute for College Access and Success said in recent years the financing of higher education has fallen more on students and their families rather than the institutions or the state.

Garcia said a vast majority of students attend less well-resourced, underfunded institutions that typically serve a higher proportion of students of color and low-income students. Those students often do not receive enough operational funding and support and make up for it by taking student loans.

After the Supreme Court鈥檚 ruling, the Biden administration came up with other proposals to address the student loan debt crisis.

The Higher Education Act of 1965 gives U.S. Secretary of Education Miguel Cardona leeway to “compromise, waive or release鈥� some federal student loans, which would allow federal officials to craft other solutions for those struggling with debt. But borrowers will have to wait several months for a proposal. The act will need to go through a negotiated rulemaking process, which includes public hearings and can take up to a year.

In the meantime, Biden is offering a 12-month “on-ramp” repayment plan so borrowers who miss a payment won鈥檛 be referred to credit agencies, avoiding default on their loans.

Garcia said these proposals are a small step forward in addressing the student loan debt crisis, but she added that Texas and the rest of the country still have a long way to go.

鈥淚f we don’t figure out a way of removing student loans as the financing option, for at least the most low income students, we’re not going to be able to build a talented workforce, in Texas, or anywhere,鈥� she said.

Disclosure: University of Texas at Austin has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete .

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The U.S. Supreme Court on Friday ruled that the Biden administration does not have the legal authority to enact a one-time student debt relief program, dealing a blow to the 40 million Americans who would have qualified.

Last year, the Biden Administration rolled out a debt forgiveness plan for borrowers with federal student loans that would be a one-time cancellation of up to $10,000.

Those student loan borrowers who had received Pell Grants 鈥� federal aid to help low-income students pay for higher education 鈥� could qualify for an additional $10,000 in forgiveness, a policy that was 

滨苍听, Chief Justice John Roberts, writing for the conservative majority of the court, deemed that聽, the Higher Education Loan Authority, known as MOHELA, would have its revenue threatened by the debt relief.

The case was filed by Republican attorneys general of Nebraska, Missouri, Arkansas, Kansas and South Carolina, along with Iowa Republican Gov. Kim Reynolds鈥� general counsel, and they argued the Biden administration overstepped its reach and that MOHELA would be harmed by a loss of profits from federal student loan debt relief.

The court majority agreed. 鈥�(T)he Secretary鈥檚 plan would cost MOHELA, a nonprofit government corporation created by Missouri to participate in the student loan market, an estimated $44 million a year in fees,鈥� Roberts wrote.

鈥淢OHELA is, by law and function, an instrumentality of Missouri: Labeled an 鈥榠nstrumentality鈥� by the State, it was created by the State, is supervised by the State, and serves a public function. The harm to MOHELA in the performance of its public function is necessarily a direct injury to Missouri itself.鈥�

President Joe Biden said in a statement that 鈥渢he fight is not over鈥� to help borrowers.

鈥淚 believe that the Court鈥檚 decision to strike down our student debt relief plan is wrong,鈥� Biden said in a statement, adding that his administration plans to announce more efforts to help borrowers.

鈥淚 will stop at nothing to find other ways to deliver relief to hard-working middle-class families,鈥� he said. 鈥淢y Administration will continue to work to bring the promise of higher education to every American.鈥�

Republicans celebrated the decision. Nebraska Attorney General Mike Hilgers and Missouri Attorney General Andrew Bailey held a Friday news conference.

Bailey said the case was about 鈥減rotecting working Missouri families from getting saddled with Ivy League debt,鈥� and about 鈥渂asic fairness.鈥�

鈥淚 paid for my college with blood, sweat and tears, and service to my country, and it鈥檚 only fair that working families not be stuck with other people鈥檚 debt,鈥� Bailey said.

All three liberal Justices, Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson, dissented. Kagan, writing for the dissenters, did not agree with the finding the states had standing.

鈥淭he plaintiffs here are six States: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina,鈥� Kagan wrote. 鈥淭hey oppose the Secretary鈥檚 loan cancellation plan on varied policy and legal grounds. But as everyone agrees, those objections are just general grievances; they do not show the particularized injury needed to bring suit.鈥�

The justices聽聽that a second case challenging the debt relief plan did not have legal standing. That case was brought by a two people with student loan debt who would either partially or entirely not qualify for the White House program. The case was backed by the conservative advocacy group the Job Creators Network Foundation.

Turbulent history for student debt relief 

The Biden administration鈥檚 student debt relief plan has not only been challenged in the courts by Republicans, but also in Congress. The House and the Senate  through the Congressional Review Act, but Biden vetoed the resolution.

More than 16 million borrowers had already been approved for relief,   before  from accepting more applicants following a nationwide injunction.

Repayments on federal student loans are set to resume Oct. 1, but interest accrual will begin starting Sept. 1, 

The Department of Education did not respond to a States Newsroom request for comment, but said on its website that the agency is 鈥渞eviewing the Court鈥檚 decision to determine next steps.鈥�

鈥嬧赌婣mericans have student loan debt, and the Federal Reserve  that the total U.S. student loan debt is more than $1.76 trillion.

A law passed in early June to address the nation鈥檚 debt ceiling  that the White House would not be able to extend the pause on repayment for federal student loans unless approved by Congress.

For three years, there has been a pause on federal student loan repayment due to the coronavirus pandemic that was initially put in place by the Trump administration and extended by the Biden administration.

In a statement, Iowa鈥檚 Reynolds said the decision 鈥渁ffirms what Iowans have believed this entire time: the hard-working men and women of this country should not bear the burden of paying off others鈥� loans.鈥�

鈥淭his plan belittles Iowans who paid their own debt or chose not to pursue a traditional four-year degree,鈥� she said.

HEROES Act central to ruling

Roberts disagreed with the Biden administration鈥檚 argument that the federal HEROES Act allowed the secretary of education 鈥渢o cancel $430 billion of student loan principal.鈥� The HEROES Act, first enacted 20 years ago, was used by the Trump administration to suspend repayments on federal student loans at the onset of the pandemic.

, U.S. Solicitor General Elizabeth B. Prelogar 鈥� representing the Biden administration 鈥� argued that under the HEROES Act, the secretary of education can 鈥渨aive or modify any statutory or regulatory provision鈥� to help borrowers in a national emergency, such as the coronavirus pandemic.

Roberts said the administration went too far. 鈥淲e hold today that the Act allows the Secretary to 鈥榳aive or modify鈥� existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up,鈥� Roberts wrote.

Roberts invoked the 鈥渕ajor questions doctrine,鈥� which means that if Congress wants to give an agency, such as the Department of Education, the power to make a decision of  鈥渆conomic and political significance,鈥� it has to explicitly say so.

Roberts wrote that 鈥渢he question here is not whether something should be done; it is who has the authority to do it.鈥�

Congress reacts

Congress is unlikely to act on debt relief anytime soon, with control split between a Republican House and a Democratic Senate.

Senate Majority Leader Chuck Schumer, a New York Democrat, said in a statement that he was disappointed in the decision.

鈥淭his disappointing and cruel ruling shows the callousness of the MAGA Republican-controlled Supreme Court,鈥� he said. 鈥淭he hypocrisy is clear: as justices accept lavish, six-figure gifts, they don鈥檛 dare to help Americans saddled with student loan debt, instead siding with the powerful, big-monied interests.鈥�

He called on the Biden administration to 鈥渄o everything in its power to deliver for millions of working- and middle-class Americans struggling with student loan debt.鈥�

Congressional Republicans hailed the decision.

Senate Minority Leader Mitch McConnell, a Kentucky Republican, said in a statement that the court鈥檚 decision 鈥渄eals a heavy blow to Democrats鈥� distorted and outsized view of executive power.鈥�

鈥淭he President of the United States cannot hijack twenty-year-old emergency powers to pad the pockets of his high-earning base and make suckers out of working families who choose not to take on student debt,鈥� McConnell said.

GOP Sen. Bill Cassidy of Louisiana, who introduced the Congressional Review Act resolution to overturn the Biden administration鈥檚 debt relief policy, said in a statement that the court came to the right conclusion.

鈥淭his is an obvious but welcomed ruling,鈥� he said. 鈥淧resident Biden鈥檚 student loan scheme does not 鈥榝orgive鈥� debt, but unfairly transfers the burden from those who willingly took out loans onto those who chose not to attend college or already fulfilled their commitment to pay off their loans.鈥�

But Democratic Sen. Raphael Warnock of Georgia said in a statement that the news was devastating.

鈥淭he Supreme Court鈥檚 decision to usurp the President鈥檚 executive authority to provide meaningful debt relief isn鈥檛 just bad for the everyday, hardworking Georgians who are being held back financially by crippling debt, but it鈥檚 also terrible for our entire economy and sets a dangerous precedent that binds the hands of the elected executive from taking action that reflects the will of the people,鈥� he said.

The chair of the House Education and Workforce Committee, Rep. Virginia Foxx of North Carolina, said in a statement that she was pleased the Supreme Court had held the Biden administration accountable.

鈥淢r. President, good riddance to your illegal, economically disastrous taxpayer-funded bailout for the wealthy,鈥� she said. 鈥溾�淭his 鈥榦ne-time鈥� 鈥榗ancellation鈥� of student loan debt was subterfuge for the radical Left鈥檚 ultimate goal of taxpayer-funded 鈥榝ree鈥� college for all.鈥�

Foxx has held several hearings about the Biden administration鈥檚 student debt relief program, and has spoken against the policy since it was announced.

The top Democrat on the House Education and Workforce Committee, Bobby Scott of Virginia, said in a statement that millions of borrowers will be denied 鈥渢he relief they need to make ends meet.鈥�

鈥淎 college education should not depend on how much money a student鈥檚 parents make,鈥� he said.

Scott said moving forward, Democrats should work to advance legislation to increase the funding of Pell Grants, lower interest rates for student loans and 鈥渕ake other critical reforms to make our student loan system work for students.鈥�

Rep. Frederica S. Wilson of Florida, who is the top Democrat on the Higher Education and Workforce Development Subcommittee, said in a statement that the decision will perpetuate inequality and continue to harm vulnerable borrowers of color.

鈥淚t is no secret that the pandemic has disproportionately impacted communities of color, exacerbating inequalities,鈥� she said. 鈥淪tudent debt cancellation would have been a bold step toward narrowing the racial wealth gap.鈥�

Youth vote

The decision is likely to become an issue in the race for the presidency. Youth organizations that back student debt relief said they will use the ruling to rally support.

Cristina Tzintz煤n Ramirez, president of NextGen America, one of the largest youth voting organizations, said in a statement that 鈥測oung voters will remember this come 2024.鈥�

She added that, 鈥渉eading into 2024, we will not forget the people who fight for us everyday and the people who would rather protect the pockets of shady billionaires.鈥�

Another Gen Z-led organization, Voters of Tomorrow, echoed similar sentiments.

鈥淲e hope that the Biden Administration is able to negotiate a deal through Congress or take executive action to relieve student debt for all Americans,鈥� the group said in a statement. 鈥淲hile we know it will be difficult with far-right politicians who have championed the removal of the plan, it is what is needed to remove the burden from millions of Americans.鈥�

Kendra Cotton, the CEO of New Georgia Project, a voter mobilization group, said in a statement that in 鈥渢he wake of this decision, New Georgia Project will double down on our efforts to connect the issues Black, brown, and young Georgians need to secure their economic futures 鈥� an increased minimum wage, better access to healthcare, and more affordable housing 鈥� to the importance of voting.鈥�

GOP presidential candidates, such as Nikki Haley, praised the decision as stopping executive overreach from the White House.

鈥淎 president cannot just wave his hand and eliminate loans for students he favors, while leaving out all those who worked hard to pay back their loans or made other career choices,鈥� she said.

鈥淭he Supreme Court was right to throw out Joe Biden鈥檚 power grab.鈥�

Another presidential candidate, Republican Sen. Tim Scott of South Carolina, released a video statement, arguing that there are other pathways to the 鈥淎merican Dream鈥� that don鈥檛 require a college degree.

鈥淲e need more welders, carpenters and electricians,鈥� he said. 鈥淭hese are the jobs that built America, and these are the jobs liberal elites can鈥檛 ship to China.鈥�

Getting a college degree has typically paved the way for a better economic future. Those with bachelor’s degrees typically  over their lifetimes than they would have with only a high school diploma.

The price of that college degree has become more daunting by the year. The average undergraduate tuition, fees, room, and board for full-time students in the 2020-21 school year was $25,910.

While grants and scholarships offset the cost of college, many people finance their higher education through student loans, which has resulted in about 44 million Americans who are now paying off.

examined data from the to see how college costs for private and public higher education institutions have changed between the 1963 and 2020 academic years, the latest data available. Tuition and fees were weighted by the number of full-time-equivalent undergraduates, while room and board are based on full-time undergraduate students.

Room and board accounts for student housing and meal plans. For public institutions, the in-district or in-state tuition was used. To account for inflation, amounts were calculated in today’s dollars using the Consumer Price Index.

The cost of college since 1963

In the 1940s, ’50s, and ’60s, the federal government passed several pieces of legislation that sent more money to states to fund higher education and kept college costs down. More people opted to go to college because it was more affordable.

In the last 15 years, states have slashed funding for colleges, spending  on higher education in 2018 than they did in 2008. Colleges opted to shift more of the cost burden onto students by increasing tuition. Household income hasn’t kept up with these increases, so students have primarily turned to student loans to fund their education.

How four-year and two-year college costs compare

Four-year colleges typically cost more than two-year colleges because they tend to spend much more on infrastructure, administration, and student services than two-year colleges. On the whole, four-year colleges are designed for students who leave their families to go to school, so there are more dorms, student health services, student clubs, and programs鈥攁nd the occasional .

Two-year colleges tend to target commuter students who live at home, and they can also offer more skills-based or technical programs, both of which help keep the school’s overall operating budget lower. While tuition and fees are much cheaper at two-year schools, they do get just from tuition. Cuts in state funding over the last 15 years have caused tuition at these institutions to creep up.

Increases at private schools outpaced public schools

The sticker price of tuition at private schools has far outpaced that of public schools over the last 30 years. Private schools don’t get government funding, so they rely on their endowment, tuition dollars, and donations to cover their costs. They also tend to be smaller than publicly funded schools, so they often charge more tuition and fees since there are fewer students.

That said, private schools often offer tuition discounts as a way to make the costs seem more bearable. These discounts can include merit-based awards, fellowships, grants, and other funds that lower the full tuition price. In 2021-2022, first-time, first-year students at private universities received an estimated on average, which is an all-time high according to the National Association of College and University Business Officers. Among all undergraduates, private universities offered a 49% average tuition discount rate. Between 2020 and 2022, many schools offered due to the coronavirus pandemic, though many did not renew them when students returned to in-person classes.

Housing has remained a fix portion of cost while dining has decreased

Colleges leverage on-campus room and board as another source of revenue. In the, many colleges added more amenities, technology, and specialized dining options to make them more attractive to prospective students who wanted all the comforts of home. Of course, this contributed to higher costs in terms of maintenance.

While the cost of food has gone down over time, that could be a result of how meal statistics are defined. Prior to the 1986-1987 academic year, board was defined as meals seven days a week, without any insight into how many meals were actually served. Now it’s defined as 20 meals per week.

This story originally appeared on Sound Dollar and was produced and distributed in partnership with Stacker Studio.

President Joe Biden announced last month the government will forgive $10,000 in debt for college loan borrowers earning under $125,000, with Pell grant recipients eligible to have $20,000 forgiven. And while Americans are at loggerheads over that, they are in almost full agreement about fixing the root cause: the high cost of a college education.

Asked to choose between the government forgiving student debt or making college more affordable for current and future students, an astounding 82% of respondents in opt for the latter. Even among those with outstanding loans, long-term affordability wins out.   

Getting there is not easy. But at Purdue University, an ambitious price freeze with tuition has held for a decade, offering innovative 鈥� if not always flawless or popular 鈥� cost-cutting models for holding the line on student bills.

Students taking a break in the cool, wood-paneled spaces of Purdue Memorial Union on a recent scorching summer day will pay no more than Boilermakers did 10 years ago 鈥� and many will likely get their bachelor’s debt-free, as some 60% did in May.

鈥淚f an institution prioritizes affordability, you鈥檇 be surprised 鈥� 飞别鈥檝别 been surprised 鈥� by how much progress can be made,鈥� says Mitch Daniels, the former Indiana governor who announced the tuition freeze in the spring of 2013, just months after he became Purdue鈥檚 president.   

The freeze meant forfeiting some $40 million from a regular increase in price. When the university managed to absorb it just by tightening its belt, the board greenlighted a second year, then a third. As applications soared, enrollment grew, and proud alumni opened their wallets, the 鈥渇reeze鈥� itself became a large source of income. 

It started as a 鈥済esture鈥�

Sitting in his office by the campus bell tower, Mr. Daniels 鈥� with a r茅sum茅 that includes big-business CEO and director of the Office of Management and Budget for President George W. Bush 鈥� traces the freeze idea back to his state governorship. A persistent question he heard then, he says, was, 鈥淚sn鈥檛 there someplace to get a quality education that won鈥檛 put us deeply in debt?鈥�  

What has a split Congress accomplished? A surprising amount.

He initially proposed the freeze 鈥渁s a gesture, a one-time acknowledgment that we understood.鈥� The average cost in real dollars of a bachelor鈥檚 degree in the United States had jumped by 41% between 2000 and 2012. Even Purdue, a public, land-grant institution, had consistently raised its price for more than 30 years.

When Andy Pavlopoulos enrolled in the aviation department in 1986, in-state tuition for the year at the flagship West Lafayette campus was $1,870. With fees, room and board, books, and the like, his total bill 鈥渨as like $8,000,鈥� says the father of three who, in his second career, owns and runs a family restaurant in Saint Joseph, Michigan.

By the time Mr. Pavlopoulos鈥� eldest child was scrolling through college websites as a high school junior in 2013, prices had soared. In-state tuition reached $9,992, and the full cost of attending 鈥� commonly referred to as the sticker price 鈥� was $22,782. For out-of-state students like his son, this meant $28,794 in tuition for a total annual bill of $41,614. 

Something to remember about sticker prices is that only a minority of students nationwide actually pay them. As each of his three children enrolled at Purdue, Mr. Pavlopoulos expected them to do what he鈥檇 done: get grants and scholarships that knock down the total they owe.  

鈥淭he sticker price is damaging misinformation,鈥� says Phillip Levine, a Wellesley College economics scholar with a specialty in higher education. It can cause 鈥減eople to make decisions that are not appropriate for them.鈥� As a result, many who would thrive in a four-year college decide it isn鈥檛 for them. 

鈥淧eople have no idea what colleges cost,鈥� he says. 鈥淭hey tend to cost a lot less than people think.鈥�

Like an effective meme, Purdue holding 鈥渢uition under $10,000鈥� broadcasts affordability. 

鈥淭here鈥檚 a nice message off of a low tuition,鈥� Mr. Levine says. 鈥淧articularly for lower-income families, we know based on research that the ability to simplify the problem increases their likelihood of attending.鈥�

Another way Purdue does this is by applying the freeze to the full cost of attendance. Institutions that have similarly suspended tuition hikes often increase other charges. At Purdue, on the other hand, the sticker price, too, doesn鈥檛 budge.

As the freeze entered its second year, the number of applications to the undergraduate program jumped by 28%. That has since climbed steadily by more modest percentages. By 2021, the admissions office was processing almost twice as many applications as it had in 2012.

Aditi Barla鈥檚 was among them. A resident of Illinois, she only analyzed her choices once acceptances were in. 

鈥淧urdue is a great school for CS,鈥� she reasoned, referring to her computer science major. 鈥淚t鈥檚 a great STEM school. And, oh, it also has a tuition freeze.鈥� Other contenders included the University of Michigan and the University of Washington in Seattle, but their sticker prices were in the $60,000-to-$70,000 range with no offers of scholarships or grants. With a younger brother in the wings and plans to go to graduate school, the choice was clear.

Today, she is a rising sophomore with no debt.

More students means more revenue 

Even after enrollments nationwide began to decline, Purdue鈥檚 on average by about 500 a year. Last fall, matriculations hit a new and unexpected high, with more than 10,000 freshmen arriving on campus. 

The number of postgraduate students has also grown, helping to raise the university鈥檚 total enrollment from 39,256 in 2012 to 49,639 in 2021. With more than half paying out-of-state or international prices, tuition revenue increased by a third during the freeze, from $629 million in 2012 to $832 million in 2021. 

But the surge in students has also posed problems. The university has had to add dorms and temporarily house students in cubicle-like lodgings created in dorm basements and study lounges.

Ms. Barla knew guys who started the year in cramped, windowless quarters: 鈥淵eah,鈥� she says, 鈥渘ot ideal, especially when you鈥檙e coming into college for the first time.鈥� By fall break, everyone was in permanent housing, and in the spring, the university was purchasing an on-campus housing complex.

鈥淲e鈥檙e pressing up against limits,鈥� admits Mr. Daniels. To mitigate this, the university has introduced some hybrid classes and has helped students who are so inclined to graduate in three years. 

But an important feature of Purdue鈥檚 success is that it has ensured its foundation remained solid. 鈥淲e don鈥檛 run a deficit. We don鈥檛 borrow any money. We don鈥檛 raid the cookie jar,鈥� Mr. Daniels says, referring to having reduced the spending distribution of the nearly $2.5 billion endowment from 5% to 4%. 鈥淲e don鈥檛 ever let it affect quality.鈥� 

Department of Education statistics indicate that, from 2012 through 2020 (the last year for which this data is available), Purdue kept up its spending on instruction at the same pace as peer institutions. Even as enrollment galloped, its student ratio is a very respectable 14-to-1. And it enhanced its campus. Among other improvements, it opened the $79 million, 164,000-square-foot, state-of-the-art Wilmeth Active Learning Center and, last year, renovated its iconic Memorial Union.   

As a research university, it has increasingly leveraged grants and contracts to bring students in on groundbreaking innovations and technologies at little to no cost to the university鈥檚 bottom line. This has helped it attract students without resorting to a widely used tactic. It鈥檚 not uncommon that at institutions that charge up to $60,000, says Mr. Levine, 鈥渧irtually every single student鈥檚 getting a $20,000 or more merit scholarship to bring the number back to $30 or $40,000 鈥� which, not coincidentally, happens to be in the range of what public institutions charge.鈥� 

As for the 鈥渄os鈥� of keeping prices down, Mr. Daniels is 鈥渂ashful about ever prescribing anything 飞别鈥檝别 done here,鈥� he says. 鈥淭he decisions, we believe, fit this place.鈥� 

However, not a month goes by, says Chris Ruhl, the chief financial officer, without a counterpart from another school getting in touch wanting to know what worked and how the campus reacted. 

Successful but not without challenges 

Not every cost-cutting measure has proved universally popular. Some faculty, for instance, voiced discontent when the university changed employees鈥� benefits. In line with a prevailing trend in higher ed, it adopted health savings accounts with high deductibles. It also changed over to defined contribution retirement plans, favored mostly by private colleges. When it contracted out its food service, Purdue Student Government formally condemned its choice of corporate giant Aramark, on the grounds that the company had incurred food and safety violations at another Indiana campus. 

And when Purdue pioneered its own income share agreement 鈥� in which students pledge to share a portion of future income 鈥� as an alternative to traditional student loans, some accused the university of breaking the law. Purdue has since suspended future contracts in the program, which is similar to a federal income-based repayment loan that also ran into trouble in its implementation. *

Other steps seem not to have caused waves. Mr. Ruhl points to such things as dismantling Purdue鈥檚 transportation system and contracting with the city to extend transit routes onto campus; outsourcing printing and photocopying services; and consolidating the university鈥檚 data centers, information technology departments, and maintenance and custodial staffs. 

鈥淎s the student body has grown,鈥� he says, 鈥湻杀疴�檝别 been able to maintain staffing levels鈥� without hiring more people.

Making affordability an institution-wide mission, he says, has been crucial not just in cutting costs but in improving the quality of the institution.

Statistics on retention and graduation rates, rankings, and fundraising support Mr. Ruhl鈥檚 claim that 鈥渁ll sorts of key metrics have improved substantially during this period of time.鈥� Likewise, the percentage of undergraduates earning their bachelor鈥檚 without incurring debt marched upward. In 2012, the proportion leaving campus with the bachelor’s diploma and no loan was 49.5%. Fifty-four percent did by 2016, and 60% did in 2021.

But Purdue鈥檚 performance in one metric proves cautionary in terms of students being able to afford, as Mr. Levine puts it, 鈥渢he place where they belong.鈥� In a conversation over Zoom, he crunches some numbers on the university鈥檚 net price calculator, a feature that institutions that receive money from the federal government are required to post on their website. 

He invents a young Indiana resident with a 3.5 GPA, solid SAT scores, and a family income well below $50,000. Asked how much the family can contribute, he types in $0. Within seconds, the calculator estimates that even with a $6,459 Pell Grant, various scholarships, and $5,500 in federal student loans, the family would have to 鈥渃ome up with $5,087 a year that they have no ability to pay for in cash,鈥� Mr. Levine reports. The student can earn $3,000 of that through a work-study program or campus job. 

The exercise, he says, shows that for a family 鈥渢hat has nothing,鈥� borrowing even $2,000 to $5,000 a year 鈥渋s not affordable.鈥� 

鈥淒espite the fact that college costs a lot less than people think, it鈥檚 still too expensive,鈥� he says. But not if the Pell Grant were doubled. 鈥淭hat would eliminate the gap completely,鈥� in which case, Mr. Levine says he鈥檇 鈥渂e on board with low tuitions.鈥� As it is, though, he believes freezes benefit wealthier students to the detriment of those of lower-income backgrounds. If the former paid the full sticker price, the university would have extra income to channel into financial aid.

The amount Purdue has spent on merit and need-based scholarships, fellowships, and awards has fluctuated over the course of the tuition freeze. In 2017-18, it gave 21% more aid than it had in 2012, but in 2018-19 the amount it disbursed fell below the 2012 levels. 

鈥淲e do have limited dollars,鈥� says Heidi Carl, Purdue鈥檚 executive director of financial aid, whose office prioritizes helping Indiana families with $70,000 or less in adjusted gross income. For some with $50,000 or less, it succeeds in meeting their full need. 

鈥淲e see this pattern of public institutions increasing tuitions and then also increasing aid,鈥� says economics professor Emily Cook of Tulane University, referring to a recent study on college pricing she co-wrote. The theory is that they are channeling the extra revenue into scholarships and grants that benefit both low-income students and middle-income families who often bear the burden of student debt. 

鈥淥ur study,鈥� says Mrs. Cook, 鈥渋s overall encouraging in that we are heading in the direction of making college affordable.鈥� 

As Mr. Daniels packs up his office, it is anybody鈥檚 guess whether the tuition freeze will extend beyond 2023 or what that would mean for students.

But whatever happens next, freezing the sticker price has done more than hit the reset button for one institution: Its leaps as well as its stumbles offer a decade鈥檚 worth of lessons on affordability.

Editor鈥檚 note: This story has been changed to clarify that only new contracts in Purdue’s income share agreement program have been suspended. 

This originally appeared at  and is published here in partnership with the .

Biden, who made student debt relief part of his presidential campaign, also extended a on student loan payments through the end of the year.

鈥淓ducation is a ticket to a better life, but over time, that ticket has become too expensive,鈥� the president said at the White House. 鈥淭he burden is so heavy that even if you graduate, you may not have access to the middle class life that the college degree once provided.鈥澛犅�

The decision could lift some of the financial burden off teachers who took out loans to fund their education. A from the National Education Association showed that 45% of educators were student loan borrowers and over half of those still have a balance, averaging almost $59,000.

鈥淣obody goes into teaching for the money, but you have to survive,鈥� said Joshua Starr, managing partner of the International Center for Leadership in Education, affiliated with education publisher Houghton Mifflin-Harcourt. Previously, he served as CEO of PDK International, a membership organization for educators. 

Making college more affordable, he said, 鈥渋s one part of a larger fabric that we have to consider when we want to promote the idea that teaching is a sustainable job.鈥�

The president gave himself an Aug. 31 deadline to announce his decision 鈥� the date that the pause on federal student loan payments was set to expire. His announcement from Republicans, who have said the policy gives borrowers will make inflation worse and ignores the law. Earlier this month, the GOP introduced that would limit loan forgiveness. But Democrats largely applauded the move, with Sen. Patty Murray of Washington, chair of the education committee, calling it a 鈥渕ilestone moment.鈥�

On Tuesday, the U.S. Department of Education provided an update on the $32 billion in student debt relief previously approved since the Democrats took office. That includes $10 billion for over 175,000 borrowers in the Public Service Loan Forgiveness program since last October. 

Under former Secretary Betsy DeVos, the vast majority in the program were even though they took education and other service sector jobs that they believed would qualify. To be eligible for forgiveness, borrowers in the program had to submit a waiver, which expires at the end of October. Democrats Education Secretary Miguel Cardona to extend the waiver until at least July 1 of next year.聽

鈥楽truggling to rebound鈥�

As the cost of a has increased, the NEA report showed that educators 35 and under were more likely to take out student loans, compared to older educators. Student debt is also more common among Black than white educators 鈥� 56% compared with 44%.

Some advocates said the president鈥檚 action doesn鈥檛 go far enough. 

鈥淐anceling $10,000 in student loan debt merely puts a Band-Aid on the real problem of reforming the system that has landed us in this mess 鈥� and within years we will be right back at the same point,鈥� the National Parents Union said in a statement.

Kim Cook, CEO of the nonprofit National College Attainment Network, noted that Pell grants for low-income students 鈥� at an average of about $4,500 鈥� don鈥檛 cover even half the annual cost of higher education. 

鈥淔ast-rising and unmanageable levels of student debt are the result of a broken system for financing higher education in which many parents and students are forced to take out loans they cannot reasonably be expected to repay,鈥� she said in a statement. The organization advocates for doubling Pell grant awards.

Experts say loan forgiveness would especially benefit early educators, who make far less than those in the K-12 system and often kept their programs open when schools were closed.  

鈥淭he pandemic shined a light on the low pay for child care providers who are leaving the industry in droves, causing a shortage of child care options for families,鈥� said Alexandra Patterson, director of policy and strategy for Home Grown, a nonprofit advocating for home-based providers. Loan forgiveness, she said, would benefit聽鈥渁 workforce that is severely underpaid and is still struggling to rebound from the impact of the COVID-19 pandemic while wrestling with the challenges of inflation.鈥�

Adrienne Briggs, who runs Lil鈥� Bits Family Child Care Home in Philadelphia, earned her master鈥檚 in early-childhood education in 2013, but she still carries over $50,000 in debt. She didn鈥檛 qualify for relief though the revamped Public School Loan Forgiveness program because she owns her own business.

Through an income-based repayment program, her $650 monthly payments have dropped to $150, but that just stretched out the debt over a longer period. The administration is also relaxing those repayment terms, lowering the percentage borrowers have to pay from 10% to 5% of their income. And it will forgive original loan balances of $12,000 after 10 years. 

鈥淓ven having my master鈥檚 did not change my position,鈥� said Briggs, who serves families who receive child care subsidies and wouldn鈥檛 be able to pay higher rates if she raised them. 鈥淎ll I ended up getting was a bill that has been haunting me all this time.鈥�

He鈥檚 introduced a bill he says will prevent the Biden administration from canceling student loan debt, ensuring the more than 43 million Americans who owe a total $1.6 trillion will have the right to pay off their debt in full.

鈥淗ardworking Americans are not responsible for paying off the student loan debt of others,鈥� said Ferguson in a statement. 鈥淭he Biden Administration鈥檚 radical big government proposal would come at the expense of taxpayers 鈥� many of whom have fully paid off their student loans, worked hard to pay for their education, or chose not to enroll in college at all.鈥�

Ferguson introduced the bill, called the Student Loan Accountability Act, on June 9, along with fellow Republican Rep. Mike Gallagher of Wisconsin. Utah Republican Sen. Mitt Romney  a similar bill in that chamber last month.

鈥淓ven though the President lacks statutory authority to implement a mass scale cancellation of student debt, the Student Loan Accountability Act puts this fundamentally unfair discussion to rest,鈥� Ferguson said. 鈥淚nstead, Congress must focus on market driven solutions that bring down the cost of higher education, including reducing the government鈥檚 role in the student loan market.鈥�

Those who oppose student debt forgiveness say it would be unfair to those who decided not to go to college because of the debt burden, as well as to those who already paid off their debts. They worry it could exacerbate inflation and would not address the root problem of sky-high tuition rates.

Adjusted for inflation, the average student loan debt has increased more than 300% since 1970, according to .

As of the end of 2021, more than 1.6 million Georgians owed about $68.6 billion, for an average debt of about $41,600, according to data from .

Many young Americans say they are unable to buy a house or start a family because of their debt.

Progressive members of the Democratic Party have called on President Joe Biden to forgive significant amounts of student loan debt, with some like Vermont Sen. Bernie Sanders advocating eliminating all student debt and funding public universities with tax dollars rather than tuition.

Last year, Georgia Sen. Raphael Warnock  Biden to eliminate $50,000 in student debt via executive order. Earlier this year, Warnock and other lawmakers signed onto a letter  Biden to forgive 鈥渁 meaningful amount鈥� of student debt.

Biden has been less fired up about the issue than younger and more progressive members of his party. On the campaign trail, he  $10,000 in student loans, which he is reportedly still considering.

Last month鈥檚 Democratic ballot for the Georgia primary election included a question about student loan forgiveness: 鈥淪hould the United States remove obstacles to economic advancement by forgiving all student loan debt?鈥� More than 85% of Democratic voters answered yes.

Borrowers are currently on a reprieve from paying their loans back because of the pandemic, but that is due  Aug. 31 after four extensions.

Speaking before a U.S. Senate Appropriations subcommittee on June 7, U.S. Education Secretary Miguel Cardona suggested another extension was possible but did not say for sure whether it was in the cards.

鈥淚 don鈥檛 have any information now to share with you about when it would end or what the conversations are about when it鈥檚 going to be lifted,鈥� he said. 鈥淚 know we have a date, and it could be that it鈥檚 extended, or it could be that it starts there, but what I will say is that our borrowers will have ample notice, and we鈥檒l communicate that with you as well.鈥�

Loans were repeatedly described as a 鈥渓ifetime sentence鈥� in interviews with 100 degree holders. For those enrolled in income-driven enrollment plans that stretch on for upwards of 20 years, growing balances are 鈥渟hackles on their ankle,鈥� and 鈥渓ike Jim Crow,鈥� with virtually no chance of total repayment.

Health scares, job insecurity and refinancing homes or vehicles with high debt-to-income ratios have derailed borrowers鈥� futures and compounded stress, according to the , 鈥淛im Crow Debt: How Black Borrowers Experience Student Loans鈥�. Many feared the only way out from under would be, 鈥渢aking it to my grave鈥� or 鈥渨hen I die.鈥�

Many of the 1,300 Black student loan borrowers are unable to access economic freedom because of their debt. An overwhelming majority cannot sustain savings, according to the advocacy nonprofit.

The majority, 66 percent, regret taking loans in the first place. Only in income-driven plans 鈥� of 2 million who鈥檝e made payments for over 20 years 鈥� have ever had loans cancelled.

It鈥檚 been that Black students 鈥� who because of , are unable to tap into generational wealth 鈥� borrow more and repay at slower rates than peers of other races. 

This report is the first national look at the day-day toll that debt has on Black families. 

It鈥檚 also the first to explore borrower-identified policy solutions, like doubling federal Pell Grants, lower interest rates and realistic debt cancellation. 

鈥淭his is not about individuals making the wrong choices, because they didn’t have good choices to make,鈥� said Victoria Jackson, Education Trust鈥檚 federal and state policy lead on college affordability.

Attempting to get loans forgiven through existing programs is also nearly impossible, graduates say.  

One borrower, named Georgia for anonymity, took out $24,000 in 1990 and owes $125,000 today.

鈥淚 have worked at a nonprofit for 27 years and have tried to work with my multiple loan servicers to get public service forgiveness. I only get the runaround,鈥� said Georgia, who like 72 percent of those surveyed by the Education Trust, is enrolled in an income-driven plan. 

鈥淚 tried the Department of Education, my Congress members,鈥� she said. 鈥淚 am 62 years old and do not know how I will retire.鈥� 

Researcher and co-author Jailil Mustaffa Bishop said student loan policy debates are always 鈥渂ased on Black people’s data, but not really involving actual Black people. We weren’t hearing how Black borrowers were framing their problems and expressing the solution.鈥�

Whether by coincidence or fate, the timing of their project 鈥渃ollided鈥� with national discussions around debt cancellation and the urgent need to reform college affordability.

No 鈥榞ood choices鈥�: How policy enables a lifetime of debt

Like many other borrowers, Georgia, struggling to retire, said she received confusing information as to which loans qualified for public service forgiveness or income-driven-repayment. 

With lower monthly payments and cancellation promised after about 25 years, she chose an IDR plan. Thirty-one years later, she has not had any student loans forgiven and her balance has compounded. 

Her experience mirrors that of 2 million borrowers who鈥檝e . A mountain of red tape and convoluted paperwork stands to keep borrowers in 鈥渓ifetime sentences.鈥� 

Intended as a temporary strategy to help borrowers pay down balances post-college, IDR plans rolled out in 1995. Borrowers pay smaller balances, based on income, and debt spreads out over 20-25 years as opposed to the original 10. 

Once borrowers are back on track, perhaps with higher paying career moves years after graduating, they can go back to standard payment plans. 

But getting 鈥渂ack on track鈥� to paying off the original loan has proven impossible, particularly for Black borrowers, with mounting costs of living, racial wealth gaps and stagnant wages. 

鈥淸An IDR plan] provides immediate relief, but it doesn’t offer a solution to borrowers who are looking at a potential lifetime death sentence, as many Black borrowers in our study described 鈥� It just offers a way for them to kind of manage that debt, but not really a solution to pay it off,鈥� co-author Bishop said.

Today, IDR is touted as the primary solution to the student debt crisis, over cancellation or forgiveness.

Yet those in IDR plans rarely see balances go down, only mount with interest. The high debts harm borrowers鈥� chances of buying homes, renting apartments or accessing credit lines 鈥� even more so than those with typical student loan plans. 

鈥淭hose in the study that were actually enrolled in an IDR plan 鈥� more frequently reported that loans were a source of financial stress. They had a negative impact on their overall mental health, as well as a negative impact on their quality of life,鈥� Education Trust researcher and report co-author Jonathan Davis said. 

About a third of graduates surveyed even postponed having a child because of their student loan debt; about half have put off retirement savings. 

Even more striking, 67 percent of those earning $75-100,000 delayed buying a home because of their student loan debt. The number is nearly just as high, 61 percent, for those with graduate degrees, in theory, better positioned in their careers.  

Chronicling the human toll behind current federal loan policies, the report makes the case for race-conscious reform. 

The future of loan policy, as told by borrowers

鈥淚 mean, realistically, I think the [student loan] system is working exactly as we expect it to 鈥� no one鈥檚 surprised that we somehow built a financial aid process and policy and set that up to only consider your annual salary, as if [Black people] all have the same net assets,鈥� one borrower said.

First and foremost among the solutions, with 80 percent surveyed in support, is wide scale debt cancellation. 

Researchers told 社区黑料 that when it came time for cancellation through IDR plans or public service loan forgiveness 鈥� which 鈥� Black borrowers were often disqualified because of technicalities.

Jalil Mustaffa Bishop said the administrative process is intentionally difficult, similar to bankruptcy filing.聽

鈥淭here’s a lot of clauses, really it means that a borrower has one misstep that may derail their whole repayment strategy. And that’s also a part of the design … that was built into student loans to make it really hard to get from under this debt. We should see that as a decision that was made, not just kind of an accident that came into being.鈥� 

Common proposals cap forgiveness at $10,000 or suggest 鈥渕eans-testing鈥�, or limiting who is eligible, for example, to those making under $100,000. Yet Black graduates experience greater wealth gaps and higher debt than any of their peers. 

Limits or caps on forgiveness would 鈥渄isproportionately exclude Black borrowers.鈥� They鈥檙e more likely to have high balances and take on graduate school debt to 鈥渉edge against discrimination鈥� in the workforce, the report cautions. They鈥檙e also least likely to amass wealth long term because of systemic racism. 

Four years after graduation, Black graduates typically owe as white graduates 鈥� a result of racial , and needing more in loans because of generational wealth gaps.

Borrowers and , currently capped at $6,495 annually. The increase would entirely eliminate the need for federal student loans for about 75 percent of families living in poverty, and 85 percent of low-income Black families.  

For years, funding declines drove up university tuition as wages stayed stagnant. Accordingly, fewer and fewer families can afford higher education.

And 鈥渢he purchasing power of the Pell Grant, the nation’s most important college grant, has declined significantly,鈥� Education Trust policy expert Jackson said.

The National Study on Black Student Loans research team will roll out more reports on specific populations and issues within the student debt crisis, like Black women and parent borrowers. They鈥檙e also in the process of building a data hub for students, policymakers and advocates to explore research, solutions and students鈥� lived experiences. 

Black borrowers鈥� experiences also point to a need for transparent loan counseling, particularly when facing income-driven plans that compound for decades with lower monthly payments.

鈥淲e still found that those in plans 鈥� that by design are supposed to help you better manage your loan repayments 鈥� are unable to afford basic necessities like food, rent, healthcare, contributing to saving, childcare鈥� We want to humanize that. While these plans by intent were designed to do one thing for black borrowers in our study, they have not yet proved to meet that intention,鈥� report co-author Jonathan Davis said.

Disclosure: Marianna McMurdock was an intern at the Education Trust-West in the summer of 2020. 

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.

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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�

鈥淎s kids, we would often play in vacant buildings, not knowing that they were filled with toxic materials and at risk of collapse, making them dangerous to us and to our communities.鈥�

St. Louis is home to more than 30,000 vacant buildings and lots, the majority of which lie north of Delmar Boulevard: on the other side of the divide. In communities like Morgan鈥檚, and failed real estate markets left black neighbors living amongst blocks of vacant homes without access to key services and community institutions. Vacant properties attract crime, depress real estate values, and threaten the social and environmental wellbeing of neighborhoods.

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This summer, Morgan is working alongside more than a dozen other students to reverse these trends through , a nonprofit that engages, educates and employs young people in the redevelopment of their communities. The organization was founded by and , two leaders in the St. Louis community development field.

鈥淲e want to provide these young people with the proof that anything and everything is possible,鈥� explains executive director Mike Woods. The organization accomplishes this through a comprehensive summer program combining youth jobs, leadership development, vacant property rehabilitation, support for minority contractors, financial empowerment, and arts-based entrepreneurship.

In short, students participating in Dream Builders 4 Equity are given paid summer jobs through , enabling them to work alongside minority contractors to learn the fundamentals of the real estate and construction trades. The homes rehabilitated through the program are sold by Black-owned brokerages to first-time homeowners. The revenue from the sale is used to finance the program and to start college savings funds for each student participant.

Woods emphasizes that the building of intergenerational wealth in black and brown communities is a priority for the organization. When interested buyers are not in a financial position to purchase the home, Dream Builders 4 Equity collaborates with the nonprofit to offer these individuals credit building and financial management resources so that they may become homeowners in the future. The organization鈥檚 work also builds wealth for neighborhood residents as the rehabilitation and sale of new homes improves area real estate values.

For example, Morgan鈥檚 first involvement with Dream Builders was the summer of 2017, when he worked with a team of fellow students to in the Lewis Place neighborhood, just blocks from where Morgan grew up. That home sold for $80,000 and was the first house sold in Lewis Place in 10 years. (As Next City , a lack of 鈥渃omps鈥� in a neighborhood can effectively hamstring lending and depress property values.) The same year the Dream Builders home sold, another home in Lewis Place was sold for $120,000. This emphasis on wealth building is of particular importance when one considers the median wealth of a black family is that of a white family; the home represents the vast majority of a household鈥檚 wealth.

Alongside real estate development activities, students also participate in financial literacy courses, engage with guest speakers, and receive leadership training. 鈥淢entorship plays a key role,鈥� Morgan says. 鈥淚n our community, we don鈥檛 have a lot of guys like Mike and Neal to show us the opportunities we have to change our surroundings, to rehabilitate vacant buildings, to improve our communities.鈥� With multiple years of program experience, Morgan now helps new students stay on track as a mentor.

Dream Builders 4 Equity also introduces students to arts-based entrepreneurship. Throughout the summer, students journal daily about their experiences. At the end of the program, each cohort compiles a selection of their journal entries 鈥� poems, stories, drawings 鈥� into a . All proceeds from book sales are given directly to the students.

Since launching in 2017, Dream Builders 4 Equity has provided sixty-two young people with over $600,000 in wages, over $40,000 in book sale proceeds, and over $60,000 in equity from the sale of homes. Dream Builders has recently adopted a place-based approach in order to maximize the organization鈥檚 impact in community.

The Dream Builders team works in close collaboration with the to engage residents in prioritizing vacant properties for rehabilitation. Neighbors identify nuisance properties (code violations, illegal activity, etc.) and, with the support of , the neighborhood association engages absentee landlords to rectify the problems. When owners do not respond, neighbors file a lawsuit against the property owner resulting in the deed being granted to the neighborhood association. The neighborhood association, in turn, designates developers like Dream Builders 4 Equity to rehabilitate the property.

Fatimah Muhammad, founder and chair of the Hyde Park Neighborhood Association, commends the positive impact Dream Builders 4 Equity is having in the neighborhood: 鈥淭he organization supports youth, it supports local minority owned businesses, it has brought high-quality housing back to the neighborhood, and we see that people are moving in.鈥� She goes on, 鈥淚t has been amazing seeing all of the youth in the community working. It has been an inspiration to other young people in the community who have inquired through our neighborhood association how to get involved. Kids are really excited to see people who look like them, who are their age, really doing great things.鈥�

In addition to rehabilitating vacant properties, Dream Builders 4 Equity provides free owner-occupied home repairs for elderly and low-income neighbors. These repairs help resident鈥檚 build equity, stay in their neighborhoods, and enjoy a higher quality of life. Furthermore, this summer鈥檚 cohort is providing free lawncare services to 150 families in the Hyde Park neighborhood. Davian, one of this summer鈥檚 Dream Builders reflects on the importance of their work in community: 鈥淚f you see beautiful houses, maintained parks, no trash, benches where you can sit and play鈥� that is a community you want to live in.鈥� He continues, 鈥淲e go around the neighborhood and talk with people. Just good, friendly communication to build bonds. Because strong bonds build strong communities.鈥�

Over the coming five years, the organization will focus exclusively on the where they seek to rehabilitate 25 vacant buildings, repair 25 owner-occupied homes, and provide free lawn care and community development services for hundreds of families.

This year, Morgan will graduate from Ranken Technical College, one of the top trade schools in the country, and start work as an independent contractor. His education was financed through the sale of homes he helped construct. Morgan says, 鈥淒ream Builders gives me and other young people the opportunity to change our environment, to make those once-vacant homes beautiful, to create spaces where kids can play safely, to uplift low-income communities.鈥� 鈥淲ith Dream Builders, we are not just starting a local movement. It鈥檚 a national and international movement to uplift low-income communities around the world. It鈥檚 starting here first. In St. Louis, Missouri.鈥�

James Smith missed his final housing payment to the University of Massachusetts Amherst when he spent a year there in an exchange program on his way to a degree at the University of Minnesota.

Strapped and with his family struggling financially at the time, he promised to pay off the $2,000 balance as soon as he could. But then collection fees were added and, because of a clerical mistake, he was charged an additional amount owed by another student with the same name.

Smith gave up. In response, the university refused to release his transcript showing the credits he had earned and paid for during his time at UMass. To make up for them, he had to take a crush of extra courses back in Minnesota 鈥� the maximum allowed without requiring additional tuition 鈥� until he had enough to graduate.

鈥淚t definitely made for a pretty horrible year and a half,鈥� Smith said about the impact of a policy he called 鈥渂oth stupid and shortsighted.鈥� In the end, he said, 鈥淯Mass never got its money, and I had to repeat a year of college because I was broke.鈥�

Stories like this are emerging nationwide in response to under which students are prevented from obtaining their credits and degrees because they owe even small amounts of money to the universities and colleges they attended.

Critics call it 鈥渢ranscript ransom.鈥�

Nearly all higher education institutions withhold transcripts from students who have even the smallest of balances, according to the higher education consulting firm Ithaka S+R, which has estimated that about 6.6 million Americans are blocked from obtaining their transcripts or degrees because of unpaid bills.

But some institutions are changing this policy as they recognize the huge impact 鈥� and very bad optics 鈥� of withholding transcripts, a practice that almost exclusively affects low-income students. Anger over this has only grown at a time when many families are suffering through the financial fallout of the Covid-19 pandemic.

In the most significant development, Southern New Hampshire University has now stopped blocking transcripts; it says it is has begun releasing these records to the 2,257 students from whom they were withheld over the last year alone because of unpaid balances that average $728.

SNHU has an enrollment of around 150,000, most of it online, a spokeswoman said, which makes it one of the nation鈥檚 largest single nonprofit providers of higher education.

The university doesn鈥檛 know how many students in all have been blocked from obtaining their transcripts over the years, though the registrar, Deanna Bechard, said there are four file cabinets in her office filled with degrees awaiting payment. Under the change in policy, all will now be sent out as soon as graduates鈥� addresses can be found.

Since the start of the pandemic, 鈥渨e were getting more and more concerns from students because they owed money, and how can they pay us if they can鈥檛 get a job,鈥� said Bechard. 鈥淎s we thought about the student experience, we were thinking, these poor students went through four years of their education, and now they can鈥檛 get their diploma because they have a balance?鈥�

As for whether withholding transcripts encouraged people to pay their debts, Bechard said, 鈥淚t was marginally successful and 鈥榤arginally鈥� is probably a strong word. The only thing it really did was prompt a conversation between the student and our accounts receivable department. It didn鈥檛 make them write a check.鈥�

Philander Smith College in Arkansas announced during commencement ceremonies that it would forgive all outstanding balances for the classes of 2020 and 2021 鈥� which came to about $80,000 鈥� avoiding students鈥� degrees from being blocked.

鈥淚f you鈥檝e got a balance, know that your balance is no more,鈥� . He said the gesture was 鈥渋n the spirit of doing all the good we can.鈥�

In Massachusetts, where transcript withholding has come under particular scrutiny, the chairman of the Board of Higher Education is publicly questioning the policy, and the board has ordered state colleges and universities to report back about how many students are affected. Data previously obtained from the institutions by The Hechinger Report and GBH News shows .

鈥淪ome of these students are in difficult personal situations,鈥� the chairman, Chris Gabrieli, said. The fact that so few of these balances have been paid off 鈥渄oes not inspire one that the hold process is a powerful tool. I think it鈥檚 the other way around,鈥� since blocking transcripts often prevents would-be graduates from transferring, going on to graduate school or getting the jobs they need to pay their debts. 鈥淪tudents should be able to have their transcripts they need to advance their agenda.鈥�

Gabrieli, who is also a lecturer at the Harvard Graduate School of Education, wondered aloud why entire transcripts are being withheld if students owe money only for a single course or a semester, or for library fines or parking tickets.

鈥淚t鈥檚 an odd thing to say their fully paid-for past semesters aren鈥檛 theirs,鈥� he said.

One Massachusetts school, Bunker Hill Community College, dropped its transcript withholding policy in response to the reporting by Hechinger and GBH. Another, the University of Massachusetts Boston, said during the investigation that it held transcripts for overdue balances in any amount; afterward, however, , and it would withhold transcripts only for unpaid bills of $1,000 or more.

A measure working its way through the Massachusetts legislature if they owe money to a public university or college. California last year became the first state in which public and private higher educational institutions were of students who have unpaid debts. A new Washington State law requires that students who owe money be allowed to get their transcripts in order to apply for jobs. And a coalition of advocacy groups in New York is pushing for legislation there like California鈥檚.

One Michigan resident was inspired by this burst of attention to resume his fight with his former university over a debt it said he owed for a course he never took.

Desmond Wright-Glenn registered for the course at Wayne State University in 2016 but then learned that, after fees he hadn鈥檛 known about were added, his scholarship wouldn鈥檛 cover the full cost. Wright-Glenn concedes that he never canceled his registration, but also says he never logged into or attended the course. Still, he was charged for it in full, and when he couldn鈥檛 pay, his transcript listing all the other classes he鈥檇 completed was withheld.

鈥淥ther than that transcript, I had no way of substantiating that [education] other than my word,鈥� said Wright-Glenn, who had hoped to go to graduate school. 鈥淚t shut me down. I at that point was living paycheck to paycheck and didn鈥檛 have $1,400 to give them鈥� 鈥� the amount the university said he owed.

His career plateaued, he said; even to get promoted at the long-term care company where he worked, he needed to provide his transcript.

Seeing news coverage of other students trapped in the same situation, Wright-Glenn, now 36, sent emails about his case in late March and early April to every member of Wayne State鈥檚 board of governors, his legislators and the governor of Michigan. A few days later, he got an email from the university bursar鈥檚 office telling him that his bill had been rescinded and his transcript would be released to him.

鈥淚鈥檓 not sure whose ear I got in,鈥� Wright-Glenn said. 鈥淚 think it wasn鈥檛 a good look. Maybe someone said, 鈥楧id this seriously happen, and are we seriously charging someone for nothing?鈥� 鈥�

Although its administrative procedures manual , a spokesman for the university said exceptions 鈥渁re sometimes made on a case-by-case basis.鈥� He said transcripts are released upon request to prospective employers even if there is a hold on a student鈥檚 account.

Now, in addition to finally applying to graduate school, Wright-Glenn is considering starting an advocacy organization for other students who can鈥檛 get their transcripts. He鈥檚 already toying with a name: Free the Grades.

鈥淚 feel like I won, but then there are 6.6 million other people out there who haven鈥檛 won, who don鈥檛 have my tenacity,鈥� he said.

Other students have stepped forward with similar accounts. One who was studying toward a degree to become a special education teacher had her transcript blocked when her financial aid ran out and she couldn鈥檛 pay for a summer course she鈥檇 taken.

鈥淢y life has been at a standstill for years,鈥� she said. Meanwhile, 鈥淚鈥檓 still paying student loans for a degree I鈥檓 not allowed to have.鈥�

That鈥檚 a story Viv茅 Griffith hears often as director of outreach and engagement for the Clemente Course in the Humanities, which offers free classes nationwide to low-income adults to encourage them to go, or go back, to college. Many are prevented from doing so because they have unpaid bills and can鈥檛 obtain the transcripts listing the credits they鈥檝e already earned.

鈥淭hese are people who are 35 or 45 and they went to college when they were 18,鈥� but never finished, Griffith said. 鈥淭hey leave us, and they鈥檝e got confidence and skills about continuing on in school, and then they hit a complete dead end.鈥�

In many cases, students want to pay their debts but can鈥檛. The money they owe started to pile up during a financial emergency or because of unanticipated expenses.

鈥淚t鈥檚 important to recognize that there鈥檚 a difference between willingly and knowingly accruing debt versus something happening,鈥� Griffith said. Besides, she said, 鈥減eople are much more likely to get this debt paid back if they can get degrees and make more money.鈥�

Bechard, at SNHU, pointed out that 鈥渆ven reversing this policy is not wiping the balance these students owe. It鈥檚 giving them an opportunity to get a job to pay the bill.鈥�

Smith, now 49 and a lawyer in California, still reflects on his experience with UMass.

鈥淚 recognize I鈥檓 a lot luckier鈥� than many others who have been through the same experience, he said. 鈥淚 didn鈥檛 have to drop out of school. I didn鈥檛 have to take a hiatus. I was able to finish and get a degree. But I basically had to repeat my sophomore year of college because of this.鈥�

Universities鈥� blocking of transcripts appears financially self-defeating and sometimes reads like bureaucratic parody.

Thomas Tarowsky went back to the campus of his alma mater, West Virginia University, for a meeting in 2014 and got a $20 parking ticket. Soon after that he received 鈥渁 rather terse and pedantic letter鈥� from the university telling him his academic transcript would be withheld until he paid the fine.

Tarowsky was 65 at the time and a retired college dean.

A WVU spokeswoman said it 鈥渧alue[s] each member of our university family鈥� and invited Tarowsky to get in touch about his case.

For his part, Tarowsky said that not only has the ticket remained unpaid, 鈥渂ut I have not and will not contribute to the alumni association.鈥�

This story about was produced by , a nonprofit, independent news organization focused on inequality and innovation in education, in collaboration with GBH News. Additional reporting by Kirk Carapezza. It is published here in partnership with . Sign up for our .