Student loan forgiveness, more money to play with?

“People can start to finally crawl out from under that mountain of debt.”
Student loan forgiveness, more money to play with?
Published: Aug. 24, 2022 at 10:23 PM EDT|Updated: Aug. 24, 2022 at 11:58 PM EDT
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LANSING, Mich. (WILX) - “It’s not enough,” – that’s what some college students are saying about The Biden Administration’s announcement.

Millions of Americans who have taken out federal student loans will get a $10,000 break. Roughly 15 million borrowers will see their entire student loan balance wiped out.

For borrowers making less than $125,000, $10,000 will be forgiven. That number goes up to $20,000 for people with Pell Grants.

Read: Biden announces student loan plan: $10,000 forgiven, $20,000 for Pell Grant recipients

College students shared their mixed emotions. Some said the amount of student loans that will be forgiven is helpful. But it does not make a huge difference for them – they said more money should be forgiven.

“But overall, it’s not much considering that a single semester some places could cost upwards of about $20-30,000,” said second-year college student, Harrison Williams.

Williams just transferred to Lansing Community College. He said that up to $20,000 in loan forgiveness won’t cover all of his college expenses.

“Overall, it’s not significant enough to change whether or not a lot of people decide to get secondary education,” Williams said. “And for me, I still have to find somewhere to go to school because it’s a huge expense.”

Williams said he’s thinking of studying in a country that offers free or low cost college courses.

Marvin Pride is a senior at Michigan State University. He’s taken out loans every year to fund his education. And since he’s a Pell Grant recipient, $20,000 worth of his student loans will be eliminated.

“Hearing that is nice because when I first came to MSU, it was intimidating too see that I’m going to be taking out that much money,” said Pride.

Read: What’s a Pell grant? Recipients can get $20,000 in student loan forgiveness

Pride said he doesn’t qualify for free room and board – and the cost of books and other supplies adds up each semester.

“Having to take out loans it was nice to hear that, that’s going to get forgiven and that it’s comforting to know that when I leave here, I don’t have to worry so much about paying that back,” said Pride.

Michigan State University said they are reviewing the Student Loan Forgiveness Program to determine its impact on campus.

The Biden Administration is also extending the pandemic-related pause on student loan payments. The pause was scheduled to expire at the end of August. It has been extended to December 31st.

Republican Lawmakers aren’t happy – they said the program will only make inflation worse.

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