Joe Biden’s loan forgiveness plan could be the saving grace for an entire generation of college students. In late August, President Joe Biden announced his plan to forgive up to 20,000 dollars of student loan debt. However, his proposal was recently put on hold by the federal court appeals, disappointing many eager adults who are ready to end their time indebted to their higher education. As we wait for this block to end, individuals should continue applying for student loan forgiveness because your future job/current jobs may not be enough to pay off your debt and having a backup plan can help soften that financial burden.
In Biden’s bill, families who make less than 125,000 dollars per year are eligible for 10,000 dollars in loan forgiveness. If undergraduate students received a Pell Grant through their financial aid package, they are qualified for 20,000 dollars in forgiveness. About 42 million Americans are eligible for this relief.
As of right now, the loan forgiveness application is still accepting requests, and policymakers are urging adults to apply before the end of 2023. I also encourage students to apply for this because the more applicants they get, the more clear the message: there are thousands of young adults eager to live a debt-free life after college.
According to a poll taken by CNBC, “fifty-four percent of respondents say their mental health struggles are directly related to [student] debt.” Also, 60 percent of the respondents noted that “they were unhappy with their choice of borrowing money.”
My parents and siblings regret the amount of loans they took out because it put them in a bad financial position today. Some students may worry that their families cannot afford their college and will be forced to drop out; it can especially be tough if students cannot earnscholarships outside of their institutions.
After college, students may find that their salary from jobs or internships will not be sufficient to pay off their debts if they are looking to purchase a home. This may force them to pick up another job or make some financial sacrifices. If you are forced to put a large portion of your paycheck towards your debt, then it will be incredibly challenging to keep up with your mortgage or other bills. Struggling undergraduate students and low-income adults deserve to have their debts paid off because they worked hard to receive higher education. Students should not have to stress over their debt negatively impacting their future beyond college. If Biden’s plan moves forward, this will relieve millions of Americans’ worrries.
Annie Stefanko is from Rosemount, Minn.
Her major is undeclared.