Colleges are using federal stimulus money to clear students’ past-due debts – an economist answers five questions

Trinity Washington University in Washington, D.C. is one of several colleges using federal money to clear their students' debt. Astrid Riecken For The Washington Post via Getty ImagesEditor’s note: A growing number of colleges and universities across the country are using money from the American Rescue Plan to clear their current and graduating students’ debt. The American Rescue Plan was signed into law in March 2021 and allocated nearly $40 billion to the Higher Education Emergency Relief Fund

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