This issue brief examines how debt owed by students directly to schools presents unique challenges, and how Washington can provide relief to students and borrowers burdened by these debts as part of the overall higher education response to COVID. Although rarely discussed as a part of the larger student debt crisis, research indicates there may be as much as $15 billion in so-called “institutional debt,” carried by students.
These institutional debts, which lack the special consumer protections or repayment options of federal student loans, can often derail student’s educational aspirations and have negative long-term financial effects in peoples’ lives. As schools receive financial support during COVID, Washington has an opportunity to take action and deliver relief to students struggling with these debts.
Read the Report: Withholding Dreams: Why Washington Must Tie COVID Relief for Colleges to Relief for Students Burdened by Institutional Debt
Read the Blog: To Access COVID Relief Money, Colleges Should Protect Students from Institutional Debts