Area students react to loan forgiveness
President Joe Biden’s announcement Wednesday to forgive up to $10,000 in federal student loans and extend the federal student loan payment pause was met with relief by some area students and graduates.
“It’s good news for me,” said Seth Anderson, a Canon-McMillan and University of Pittsburgh graduate who works as a nurse at Heritage Valley Sewickley.
“It’s a bit of a stress relief, even though it’s marginal compared to my overall debt,” said Anderson, who borrowed a significant amount in private loans to cover the cost of his tuition. “(The loan forgiveness) will cover a good chunk of my federal loans; unfortunately, I still owe a lot in private loans, and I’m waiting for the day that’s dealt with.”
The White House said an estimated 43 million borrowers will receive some sort of debt relief, and roughly 20 million will have their student loan balances wiped out entirely.
According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt.
The nation’s federal student debt currently tops $1.7 trillion.
According to the White House, two-thirds of borrowers are under 40, and most of the debt cancellation will go toward people making less than $75,000 a year.
“That’s 20 million people who can start getting on with their lives,” Biden said.
“All of this means people can start finally to crawl out from under that mountain of debt. To get on top of their rent and their utilities. To finally think about buying a home or starting a family or starting a business.”
Dr. Monica Speicher, a physician who lives in North Strabane Township, said that student loans enabled her to graduate from college and attend medical school.
“I was a first generation college student. I would not be where I am today without the ability to take out loans,” said Speicher. “There is no way that my family could afford that debt burden. The beauty of the student loan system is that it affords people the chance for an education that they wouldn’t have the privilege to attain otherwise.”
She continued, “The plan announced today not only helps with some of the burden of debt repayment, it takes steps toward stopping predatory lending and interest by lowering the cap on monthly payments while also restricting accruement of outrageous interest charges.”
Speicher asked, “When did we as a society stop realizing we are only at our best when we collectively lift up one another?”
Erin Burns, a junior at Washington & Jefferson College, said the loan forgiveness will help her and her siblings struggling with student debt.
“I have siblings who have a lot of college debt, so it will be a good thing for people like them,” said Burns, noting her sister delayed purchasing a car because her monthly school loan payment was high.
Kristen Locy, a 2018 graduate of Washington & Jefferson College, had a mixed reaction to the news.
“It’s definitely going to benefit my life. I’m really excited something happened regarding this, but I also feel frustrated that it’s not more,” said Locy, who graduated with a degree in environmental science.
Locy’s parents took out Parent Plus loans, which are included in the loan forgiveness plan.
She believes more debt should have been canceled, and called the move “a drop in the bucket for my generation.”
“I feel both ways. I’m grateful that something got done, and it will help people, but I think we also need to keep fighting for people who really need more help” said Locy. “I feel like some people act like our generation wants a free pass, but that’s not the case. No one’s asking for a free pass. People want to pay (their loans off). It’s leveling the playing field for folks.”
The loan forgiveness plan does not address loans for graduate and doctoral students, so Dr. Samantha Farabee, a veterinarian who earned her undergraduate degree from Washington & Jefferson College, will still be left paying a vast majority of her student loans.
Farabee said she holds about $420,000 in student loans.
“Basically, this announcement means nothing to me because my undergraduate loans are marginal,” said Farabee. “I’m aware of the impact that it will have on undergraduates, and it’s great for them, but for those with advanced degrees who have way more debtloads and a salary that doesn’t necessarily supplement that, it doesn’t have much of an impact on us.”
Farabee said she is more concerned about private loans for graduate school, which she called “almost predatory.”
“This is a step in the right direction,” said Farabee. “But there is so much more they can do to help.”