Budget deal in Washington wipes away millions in Katrina debt for SUNO, Dillard and Xavier
Little of the low-interest loans had been paid back in the decade since, 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 hiking tuition wouldn't be an option, Kimbrough said.
The loans' forgiveness brings to a close years of lobbying by the institutions and politicians from
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