A new initiative by the Community Foundation for Greater Atlanta aims to ease the burden of student loan debt for borrowers who live in specific neighborhoods and have been active in their communities. The program, called the Student Loan Debt Pilot, will offer “reverse scholarships” that will pay off up to $30,000 in student debt for eligible applicants.
How the program works
The Student Loan Debt Pilot is a $300,000 pilot program that will launch in September 2023. The program will target borrowers who live in the Foundation’s three neighborhoods of focus in metro Atlanta: South Cobb (Fair Oaks), South Fulton (College Park and East Point), and Atlanta’s Thomasville neighborhood. These areas were chosen because they have high levels of economic inequality and low rates of college completion.
The program will accept applications from borrowers who have an annual income of less than $150,000, regardless of household size, and who owe no more than $30,000 in student loans. Borrowers do not need to have earned a degree to apply for the help. The Foundation will also look for applicants who have been longtime residents and who have demonstrated community involvement and leadership.
The program will select up to 15 borrowers in its first year and will pay off their student debt in full, up to $30,000 per person. The Foundation hopes to expand the program in the future and to raise more funds from donors to support it.
Why the program is needed
The Student Loan Debt Pilot is a response to the growing crisis of student loan debt in the country and its disproportionate impact on marginalized communities. According to the Foundation, Americans collectively owe an estimated $1.75 trillion in student loans, with Georgians owing an average of $40,268.87 each. Student loan debt can affect borrowers’ financial, physical, and mental health, as well as their ability to build wealth and pursue their goals.
The Foundation says that student loan debt is especially burdensome for Black, Indigenous, and other students of color, first-generation college students, and those from low-income families, who tend to borrow more and face more challenges in repaying their loans. The Foundation also notes that student loan debt can prevent borrowers from investing in their communities and contributing to the local economy.
The program comes at a time when federal student loan payments are set to resume in October 2023, after a year-long pause due to the COVID-19 pandemic. The program also follows the recent decision by the U.S. Supreme Court to strike down President Biden’s plan to forgive some or all student loan debt for millions of Americans.
How to apply for the program
Interested borrowers can apply for the Student Loan Debt Pilot program online at the Foundation’s website. The application deadline is September 15, 2023. Applicants will need to provide information about their income, student loan balance, residency, community involvement, and personal statement. The Foundation will notify the selected recipients by October 15, 2023.
The Foundation encourages applicants to contact them with any questions or concerns about the program at studentloandebt@cfgreateratlanta.org or 404-688-5525.
