Community Foundation announces Student Loan Debt Pilot program

There are many benefits to postsecondary education for our community and individuals who pursue it – most notably, earning a postsecondary degree is a pathway to increased earnings over an individual’s lifetime. On average, earning an associate’s degree adds about $7,300 to a high school graduate’s annual income, while earning a bachelor’s degree adds $26,000 annually. However, for many community members, particularly those whose families earn low incomes, are first-generation college students, or are Black, Indigenous and other students of color, the benefits of postsecondary education are reduced by high student loan burdens. These burdens can make it more difficult for community members to save money, buy homes, start businesses, pursue additional education, or otherwise build wealth.

According to data recently released by the Urban Institute, there are several Public Use Microdata Areas (PUMAs) across metro Atlanta where the percentage of student loan holders with delinquent student debt (at least 60 days past due) exceeds 15% – the highest being 21%.  Georgians owe an average of $40,268.87 in student loans—higher than the national average. In total, Georgians across the state owe $66 billion in student loans. This is evident across the region – and in the Foundation’s three primary neighborhoods of focus: South Cobb (Fair Oaks), South Fulton (College Park and East Point) and Thomasville Heights. College Park is ranked 16^th– worst city in the nation for student debt burden. Median student debt in College Park is $28,741, compared to the median earnings for bachelor’s degree holders – $41,830.

While President Biden’s SAVE program will give relief to hundreds of thousands of borrowers, many will be left behind, including parents who took out Parent PLUS loans, and the program may be challenged legally in the same way President Biden’s previously proposed forgiveness program was. When student loan payments resume in October, many metro Atlantans will face difficult financial choices. Even for those whose payments are paused or reduced, student loan debt will continue to impact their credit scores and ability to build wealth.

The Community Foundation for Greater Atlanta is proud to launch a Student Loan Debt Pilot Program designed to assist in tackling the student loan debt crisis in our region. Rooted in our TogetherATL strategic priorities of Place-based Philanthropy and Income and Wealth, the Student Loan Debt Pilot aims to create a more equitable region and shared prosperity for all residents.

Targeted to serve residents in our three neighborhoods of focus who hold student loan debt, this program will eliminate a number of selected residents’ student debt burden, allowing them to reduce their debt and increase their ability to build wealth. Payments will go directly to the student or parent loan providers, not the borrowers, and will be limited to $30,000 per borrower this year.

In addition to debt relief, with its short- and long-term benefits, this Student Loan Pilot aims to prove the positive impact of student debt repayment or elimination, and to build momentum towards a universal, systemic solution to the student debt crisis. Debt relief recipients will be asked to participate in a long-term evaluation and storytelling project to highlight their experiences and the opportunities that student debt elimination opens to them.

The application opens August 15 and closes September 15! If you hold student loan debt and would like to apply for this program, visit our student debt payment pilot program page to view the guidelines and application.

Our funding is limited! If you are a donor seeking to support community members who hold student loan debt, please contact our philanthropic team or click here and select “TogetherATL – Income and Wealth” from the drop down menu.