University of Southern Maine erases $2M in student debt
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The University of Southern Maine, whose Portland campus is shown here, is part of the University of Maine System.
The University of Southern Maine on Tuesday said it has forgiven $2 million in debts of current and former students unable to pay their outstanding college bills during the pandemic.
Since spring 2020, when the pandemic began, 763 students have racked up the outstanding balances for tuition, fees, room and board. Almost $1.6 million in debts were accrued between spring 2020 and summer 2021, and the remaining $400,000 is from last fall.
The university has excused all USM debt for students who acquired it between spring 2020 and summer 2021. For the more recent debts, USM has forgiven up to $2,225 per student. USM is funding the debt forgiveness program from the school's federal pandemic relief fund.
“As the pandemic continues, so do the challenges our students face. With this support, it is our hope that we can offer some relief to current students and ensure that former students know they can come back unencumbered to finish their education,” said outgoing USM President Glenn Cummings.
He is stepping down from his role July 1 to return to a faculty position at USM amid a national search for his successor.
Students do not need to take any action to have their debt forgiven, according to the school, which has campuses in Portland, Gorham and Lewiston. The forgiveness was processed automatically last Wednesday and students have already been notified.
Students who owe money may have their diploma and transcripts withheld or new class registration denied. With their debt excused, students will be able to enroll in classes once again and, for those who have already graduated, receive their diploma and transcripts, according to USM.
The school underscored its commitment to helping students invest in their futures, and said that forgiving the debt is part of that. Students who complete their education have better social mobility are able to enter the Maine workforce with the skills and knowledge that employers need today, USM noted.
Since the start of the pandemic, USM has passed on $12.3 million in federal relief directly to its students, not including this new debt forgiveness.
On a nationwide level, U.S. student loan debt is close to $1.3 trillion, according to statistics posted March 1 by the Education Data Initiative. The same report shows that the average public university student borrowed $30,030 to attain a bachelor's degree.
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