Budget deal in Washington wipes away millions in Katrina debt for Dillard, SUNO and Xavier
So did
Little of the low-interest loans had been paid back in the past decade, as most of the universities struggled to regain their footing and boost enrollment. Payments were suspended in 2013 under a provision -- which also restructured the debt -- inserted into a 2012 spending bill by former Sen.
But the five-year loan forbearance period was set to expire in April, putting pressure on the universities. Each potentially faced millions in debt payments to the federal government.
"It would've been crippling," said
Many of the college's students come from middle- or low-income families -- with roughly 75 percent eligible for federal Pell Grants -- meaning that hiking tuition wasn't an option, Kimbrough said.
The Journal reported in 2017 that the four institutions together had paid back a total of roughly
The loans' forgiveness brings to a close years of lobbying by the institutions and politicians from
"My predecessor, Dr. Victor Ukpolo, and I have been working with the other three universities for some time to make the case for this forgiveness," said SUNO Chancellor
The chancellor also noted that the vast majority of other Katrina federal loans have already been forgiven.
"This loan forgiveness will allow
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