Alabama grads positive, yet hesitant over student loan forgiveness plan
Debt relief for students who paid for college with loans is on the way thanks to the Biden Administration.
They announced Wednesday the cancellation of $10,000 of federal student loans for borrowers who make under $125,000 a year.
If you are within that income range and also received a Pell Grant you can seek forgiveness for up to $20,000 of your loans.
In addition, the White House will be extending the pause of student loan repayments through December.
The US Department of Education announced no payments will be required on federal student loans until January 20-23, making this the final extension.
But plenty of recent college graduates are lauding the move.
“A lot of times people get a college degree but aren’t able because of certain reasons to obtain employment that matches the wage that the degree deserves,” said attorney Josh Swords. “Therefore they are stuck with that kind of debt around their neck with no way to really repay it or it eats too much into the family income.”
Many people have questions and concerns regarding the program, including wondering if it will affect inflation or affect the overall economy.
“How is this going to affect the credit scores?” said University of Alabama graduate Christina Barnett. “How is that going to affect students today who are taking out student loans? Are they going to get the $10,000 forgiveness? Is this going to be something that we continue? And I know that the idea is to help with the inflation and to put money back into the economy but how.”
The plan does not apply to future college students, but President Joe Biden is proposing a separate rule that will reduce monthly payments.