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US Supreme Court Blocks Biden Student Loan Forgiveness Plan; What Options Do Students Have Now?

Jordan Braithwaite, 21, center, an undergrad at Grambling State University facing more than $10,000 in student loans, demonstrates outside the US Supreme Court, June 30, 2023, in Washington.
Jordan Braithwaite, 21, center, an undergrad at Grambling State University facing more than $10,000 in student loans, demonstrates outside the US Supreme Court, June 30, 2023, in Washington.

President Joe Biden's $400 billion plan to cancel or reduce federal student loan debts for millions of Americans was effectively killed by the U.S. Supreme Court. However, there are smaller alternatives for borrowers. Some states, including some that challenged Biden's plan, offer loan forgiveness programs, and federal programs exist for public service workers, people with disabilities and many others. Chris Quintana, Medora Lee and Alia Wong of USA Today round up the options for graduates. (July 2023) [[ ]]

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Columbia students on edge as police presence remains on campus after raid to clear protesters

Columbia students on edge as police presence remains on campus after raid to clear protesters
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Police remain on Columbia University’s campus, even after clearing out student protesters and their encampment. But questions remain about how the university and the students move forward. Tina Trinh reports from New York.

Columbia University student journalists had an up-close view for days of drama

Israel Palestinians Campus Protests
Israel Palestinians Campus Protests

Student journalists on the Columbia University campus knew what was coming long before police with riot shields arrived to begin arresting the pro-Palestinian protesters.

They had watched the situation spiral as the protesters stood their ground, refusing to abandon Hamilton Hall and using a pulley system to bring supplies into the building they had occupied.

The reporters, working for university and online U.S. and international publications, suspected negotiations with administrators were going nowhere when the protesters began donning COVID-era masks to hide their identities. Some began sleeping on the floor in journalism classrooms or offices out of fear of missing something.

Columbia students on edge as police presence remains on campus after raid to clear protesters
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But when a journalism professor began writing the phone number to call if they were arrested in permanent marker on their arms, that was the moment it became clear: They were capturing history.

The police operation Tuesday night that cleared out Hamilton Hall capped two weeks of drama over the protests at Columbia, which student journalists at the Ivy League school lived through as they were covering it.

A NYPD bus carries arrested students at Columbia University in New York City on April 30, 2024.
A NYPD bus carries arrested students at Columbia University in New York City on April 30, 2024.

Other media were being kept off campus, so these reporters were the only ones who could capture what was happening.

"I just woke up and I was like, I'm going to go and take some pictures," said Seyma Bayram, a Columbia journalism fellow focused on creating a longform investigative podcast unrelated to the protests.

The encampments were a visual feast. There were musical performances, students reading and helping each other write papers for their classes. She wanted to document it all.

By Monday, students were facing suspension if they didn't leave. Crowds marched around the encampment chanting. Students were given written notices from the administration, warning them to go. They ripped them up, dumped them in trash bins. Rumors were flying.

That night, Bayram was unwilling to go home, sleeping on her office floor.

"How," she wondered, "are they going to remove the students. They're not leaving."

By Tuesday, she was exhausted. The student reporters charged their cameras and other gear and waited.

Many protesters were starting to leave, recalled Shayeza Walid, a graduate journalism student at Columbia, who covered the arrests for the news website Al-Monitor.

The sun was setting as they held hands and chanted, knowing they faced academic repercussions by remaining. Many had given up covering their faces by now, Walid said.

To her, the chants sounded like a hymn and she saw the protesters, some clad in Palestinian keffiyehs, crying. She doubts she will ever forget it.

"It felt so both inspirational and devastating because these were the kids who were willing to get arrested," she recalled.

And then police started assembling outside, setting up barricades. Even on campus, Bayram could tell by the photos posted on social media that police action was imminent. And then the police were there.

"I don't know, it was just like all of a sudden there were just like police, ... riot gear everywhere," Bayram said.

Police officers stand in front of the entrance of Columbia University in New York on April 22, 2024.
Police officers stand in front of the entrance of Columbia University in New York on April 22, 2024.

The student journalists were walking backward, filming as they went, Bayram said.

She was pushed off campus. Police buses and officers were everywhere. Around her, people were being arrested.

"Those of us who are pushed out, like student reporters and faculty, I think we were just all horrified that no press was present outside of, or inside of, Hamilton Hall," Bayram said.

Walid recalled that the reporters paired up for safety. Her partner, an international student, had never seen so many police in one place. "And frankly, I hadn't either," Walid said.

She said the police also seemed shocked when they came into campus and saw how few students were left. "It was very evidently disproportionate from where we were standing," she said.

Before the arrests, protesters inside the campus used a megaphone to lead those protesting outside in chants, recalled Cecilia Blotto, a graduate journalism student, who has been publishing photos and video to Uptown Radio, a project of the university's journalism program.

"Columbia, you are a liar," she recalled them chanting, along with "Disclose, divest! We will not stop, we will not rest."

Then Blotto saw police buses pull up, officers exiting with shields and zip ties. Then they played a recording saying that if the protesters didn't disperse they would be arrested.

"People were like being dragged out on the street, with like four cops holding a leg and an arm each. I saw some really, like, striking images of people, like, yelling shame at the cops, while they were dragging out students," Blotto said. She tried to film it all.

NYPD officers in riot gear enter Columbia University's encampment as they evict a building that had been barricaded by pro-Palestinian student protesters in New York City on April 30, 2024.
NYPD officers in riot gear enter Columbia University's encampment as they evict a building that had been barricaded by pro-Palestinian student protesters in New York City on April 30, 2024.

Emily Byrski, a graduate student who had a phone number written on her arm in case she was arrested, said the students weren't totally unprepared. There had been a training session.

Still, she said, there had been so many false alerts.

"It's like the boy who cried wolf. Like, there were two or three nights here where we were told, there was a rumor going around that the NYPD was coming, please come to campus," she recalled.

Byrski had knee surgery earlier in the year, so was unable to run as police descended. She limped along with her buddy.

"So we're sort of seeing this all happen from inside and trying to document it as the NYPD is grabbing people, like shoving them to the ground. It was pretty horrifying to see, like, right a foot away from me," Byrski said.

She said she has seen professors cry over the last week. She is pondering it all, uncertain what to make of it.

"I'm just sort of in shock," Byrski said. "I think we all kind of were in shock."

Botched US student aid application form rollout leaves many in limbo

FILE - Students cross the campus of Dartmouth College in Hanover, New Hampshire, March 5, 2024. After months of delays and technical hiccups, some colleges and universities have started to receive federal data they need to put together financial aid offers for incoming students.
FILE - Students cross the campus of Dartmouth College in Hanover, New Hampshire, March 5, 2024. After months of delays and technical hiccups, some colleges and universities have started to receive federal data they need to put together financial aid offers for incoming students.

The last thing standing between Ashnaelle Bijoux and her college dream is the FAFSA form — a financial aid application that's supposed to help students go to college but is blocking her instead. She has tried to submit it over and over. Every time, it fails to go through.

"I feel overwhelmed and stressed out," said Bijoux, 19. She came close to tears the last time she tried the form. "I feel like I'm being held back."

Normally a time of celebration for high school seniors, this spring has been marred by the federal government's botched rollout of the new FAFSA application. By May 1, students usually know where they're headed to college in the fall. This year, most still haven't received financial aid offers. Three months before the start of fall classes, many don't know where they're going to college, or how they're going to pay for it.

"We're asking them to make probably one of the biggest financial decisions — and decisions that will have the biggest implications on their lives going forward — without all of the information," said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators.

FAFSA, or Free Application for Federal Student Aid, went through a massive overhaul that was supposed to make it simpler and shorter. But a series of blunders by the Education Department made it harder than ever, delaying college decisions by months and raising fears that hundreds of thousands of students will forgo college entirely.

Across the United States, the number of students who have successfully submitted the FAFSA is down 29% from this time last year, and it's even worse at schools with more low-income students, according to the National College Attainment Network.

The group's CEO, Kim Cook, warned members of Congress this month about a potentially "catastrophic" drop in college enrollments that would make the decreases of the pandemic seem mild.

For Bijoux of Norwich, Connecticut, the FAFSA problems threaten to undermine the promise of higher education.

To her, college is a chance to seize the opportunities that weren't available to her mother, who immigrated from Haiti to the U.S. as an adult. Bijoux hopes to become a therapist and set a positive example for her three younger brothers.

Ashnaelle Bijoux poses on campus at Norwich Free Academy in Norwich, Connecticut, April 27, 2024. Bijoux, a senior at NFA, has been unable to complete the FAFSA form due to a glitch with the form.
Ashnaelle Bijoux poses on campus at Norwich Free Academy in Norwich, Connecticut, April 27, 2024. Bijoux, a senior at NFA, has been unable to complete the FAFSA form due to a glitch with the form.

If her FAFSA goes through, she should be eligible for enough financial aid to help with the $13,000-a-year tuition at Southern Connecticut State University. If not, she might go to a local community college, but even that would require loans if she can't complete the FAFSA.

"That's why it hurts, because it's like you work so hard to go somewhere and do something and make something of yourself," Bijoux said. "I thought I would start at a four-year (college) and then work hard continuously, like I've been doing basically my whole life. But that's not the case."

The updated FAFSA form has one section filled out by students and another by their parents. But when Bijoux finishes her part, nothing shows up on her mom's online account. She keeps trying, but nothing seems to change.

Similar problems have been reported across the country, along with numerous other bugs that the Education Department has scrambled to fix. Families who call for customer service have faced long wait times or say the call center hung up on them.

It "drains all the momentum" from families working to send their children to college, especially those navigating the process for the first time, said Anne Zinn, a counselor at Norwich Free Academy, where Bijoux goes to school.

"I can only say so many times, 'Just be patient, just be patient,' before they throw their hands up and they're like, 'Why am I doing this? I'm just going to go get a job,'" she said.

The rollout has attracted bipartisan criticism in Congress, and it's being investigated at the request of Republicans. Last week, Richard Cordray, the federal student loan chief who oversaw the FAFSA update, announced he's stepping down at the end of June.

For colleges, too, the delays pose a major threat.

Enrollment decreases like those being projected now could put many small colleges out of business or necessitate deep cuts in staff. Some colleges are pushing for emergency relief just to stay afloat, said Angel Pérez, CEO of the National Association for College Admission Counseling.

"If they don't get checks from the federal government to basically get them through next year, they will not survive," Pérez said.

FAFSA has been the linchpin of student financial aid for decades. It's used to determine eligibility for the federal Pell grant, a scholarship for low-income students, and it's required to receive federal student loans. Colleges and states also use FAFSA to distribute their own scholarships.

FAFSA had long been maligned for being tedious, difficult and intimidating to families without college experience. Congress passed legislation in 2020 meant to simplify the form. The Education Department was ordered to reduce the number of questions from more than 100 to about 40 and change the formula to expand aid to more students.

Problems started piling up as soon as the new form went online in December, already months overdue.

The first applications were incorrectly processed using an outdated calculation for inflation. Later, a federal contractor miscalculated a different formula on more than 200,000 applications. Each mistake added to delays, leaving students waiting longer to hear anything about financial aid.

Even more worrisome is a misstep that blocked students from finishing the form if they have a parent without a Social Security number. Advocates say the system locked out hundreds of thousands of students who are U.S. citizens or permanent residents but whose parents are not.

The Education Department on Tuesday said it's giving those parents a new way to enter their tax information manually. But as recently as this week, some students said they were still blocked from submitting the form.

Federal education officials say they're addressing lingering bugs but making progress. More than 8 million student applications have now been processed and sent to colleges, the agency said, and new applications are being processed within three days.

Still, the wait is far from over. It usually takes weeks for schools to prepare financial aid offers. Some colleges have extended decision deadlines to give students more time to weigh their options. But some stuck to May 1, forcing students to choose a college — and make a nonrefundable payment to hold their spot — without knowing all their scholarship options.

In Baltimore, Camryn Carter is waiting to find out if he'll get a full ride to the University of Maryland or face tens of thousands of dollars in student loans.

A top student and captain of his baseball and wrestling teams, Carter sees college as a step up in life. He thinks back to the times in the grocery store line when he had to put items back on the shelf because his mom couldn't afford the bill. A college degree would give him the stability he didn't always have, the 18-year-old said.

But when he looks at tuition, it's intimidating. Along with Maryland, he's also considering McDaniel College, a private school in Maryland. If he enrolls there, he expects to borrow almost $30,000 a year.

"I try to make the best decisions now so I can have a good future," he said. "I'm a little nervous that things won't work out. But I'm faithful."

Florida program helps migrant students tutor younger children

FILE - An empty elementary school classroom is seen on Aug. 17, 2021, in the Bronx borough of New York.
FILE - An empty elementary school classroom is seen on Aug. 17, 2021, in the Bronx borough of New York.

The 40-year-old initiative pairs migrant students in high school with elementary school children. High schools earn college scholarship money for their work. (April 2024)

Former students at for-profit Art Institutes are approved for $6 billion in loan cancellation

FILE - People walk past the Art Institute of Philadelphia operated by the Education Management Corporation on Nov. 16, 2015, in Philadelphia.
FILE - People walk past the Art Institute of Philadelphia operated by the Education Management Corporation on Nov. 16, 2015, in Philadelphia.

The Biden administration Wednesday said it will cancel $6 billion in student loans for people who attended the Art Institutes, a system of for-profit colleges that closed the last of its campuses in 2023 amid accusations of fraud.

Saying the chain lured students with “pervasive” lies, the Education Department is invoking its power to cancel student loans for borrowers who were misled by their colleges.

“This institution falsified data, knowingly misled students, and cheated borrowers into taking on mountains of debt without leading to promising career prospects at the end of their studies,” President Joe Biden said in a statement.

The Education Department will automatically erase loans for 317,000 people who attended any Art Institute campus between Jan. 1, 2004, and Oct. 16, 2017.

The department says it's taking action after reviewing evidence from the attorneys general of Massachusetts, Iowa and Pennsylvania, which previously investigated complaints of fraud and sued the for-profit chain.

According to the department's findings, the chain misled students about the success of graduates and about employment partnerships that would help students find jobs.

The chain told prospective students that more than 80% of graduates found jobs in their fields of study, but that was largely based on doctored data, the Education Department said. The true employment rate was below 57%.

Campuses also advertised graduate salaries that were based on fabricated data and included extreme outliers to make averages look better, the department said.

One campus included the annual salary of tennis star Serena Williams to skew the average salary, investigators found. Williams studied fashion at the Art Institute of Fort Lauderdale, Florida.

The chain's tactics led borrowers to borrow high amounts of debt for programs that didn't pay off, the department said.

“The Art Institutes preyed on the hopes of students attempting to better their lives through education,” said Richard Cordray, chief operating officer of the Education Department's Federal Student Aid office. “We cannot replace the time stolen from these students, but we can lift the burden of their debt."

On Wednesday, the Education Department will start emailing borrowers who will get their loans canceled. They won't need to take any action, and payments already made on the loans will be refunded.

At its height, the chain had dozens of campuses across the country, including in New York, Chicago, Miami and Los Angeles. It was operated for decades by Education Management Corp., which collapsed in 2018 after years of legal trouble.

The company reached a $95.5 million settlement with the Justice Department in 2015 over allegations of illegal recruiting tactics. Soon after, it began closing campuses and later sold the remainder to another company.

The final eight campuses were shuttered last year.

The Biden administration has continued to cancel student loans through several existing programs even as it pursues a wider plan for one-time cancellation. That plan is a follow-up to one that the Supreme Court rejected last year.

In total, the Democratic administration says it has approved the cancellation of almost $160 billion in student loans, including through programs for public workers and those defrauded by their schools.

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