The Biden administration announced the cancellation of up to 20 thousand dollars of federal student loan debt. Millions of Americans will benefit, including UL students and alumni.
The plan would cancel up to 10 thousand dollars for individuals earning less than 125 thousand dollars per year, and couples making 250 thousand dollars per year.
Up to 20 thousand dollars would be forgiven for low-income borrowers who received Pell Grants.
It also extends the federal pandemic pause on student loan repayment through the end of this year. President Biden is proposing that people with undergraduate loans will be able to cap their payments at five percent of their monthly income.
"Yeah, I feel like a little is better than nothing at all," a UL student said.
70 percent of just over 90 thousand students have acquired student loan debt. Students told KATC they are ecstatic knowing they could have some or most of their student loans forgiven.
“So that would be better for me because that way there's more money coming in my pockets for whenever I decide to fall like Texas, for example, or do something else with my job that way I get all my money that's coming to me and I have to take out and give to someone else,” UL student Shaylin Lawrence said.
Dr. DeWayne Bowie Vice President of Student Engagement at UL said, loan forgiveness of the caliber could raise credit scores and allow many to spend money on necessities.
"The maximum loan they can borrow as an undergrad student is right at $33,000. Okay, so if he is relieving $20,000 of debt like two-thirds of their debt, that is a major boost to their economic stability, their ability as well to you know, be able to live comfortably. I think that is a major boost for those students,” Bowie said.
Licensed professional counselor, Angela Kately Eaglin, PLPC, said knowing relief is coming could help close the racial wealth gap and focus on her career.
“I think my balance right now is probably maybe 101k,” Eaglin said.I think it will give me professionally, more time to focus on enhancing the counseling profession as a whole while also enhancing the quality and productivity that my clients have in their lives. Because I'll have more time to do more research and training and things like that, instead of focusing on making more income to pay off student loan debt.”
“You know maybe buy a home automobile, save money for education for their children, to be able to live comfortably. I think that’s a great provision in this proposal,” Bowie said.
Students can also sign up to receive an email from student aid that will let them know when the forgiveness form will be available on the federal student aid website.
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