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Colleges and universities are using federal money from the American Rescue Plan to clear outstanding debts for students and recent graduates who enrolled in their institution on or after March 13, 2020. Both students and their respective institutions will benefit from this debt clearance, according to Chittenden. The debt clearance will enable students to continue with their education and pursue career goals, he writes. Meanwhile, institutions will be able to clear debts without tapping into their own finances.

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