Minnesota State Mankato students react to student loan forgiveness plan

President Joe Biden announced a new plan Wednesday to cut down on federal student loan debt for low-to-middle class families.
Published: Aug. 25, 2022 at 8:14 PM CDT
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MANKATO, Minn. (KEYC) - The rising cost of education has caused millions of Americans to take on student loan debt.

“It can be really stressful, especially when you’re dealing with school and having to figure out a way to make money and pay off all that stuff.”

President Joe Biden announced a new plan Wednesday to cut down on federal student loan debt for low-to-middle class families.

“It can be a stressor that can last 10, 20, 30, or 40 years into their life.”

The historic move will cancel $10,000 for borrowers making less than $125,000 a year and for couples making less than $250,000. Pell Grant recipients could get as much as $20,000 of their loans forgiven.

“People under the line could probably use the money because that debt can just keep piling up and the fact that you can’t file for bankruptcy or anything like that, you have to pay for it somehow.”

Many students at Minnesota State University, Mankato say it’s a step in the right direction.

“Having to focus on money and taking that focus away from your education is not a good thing to worry about.”

“For me, for international students, the price [of tuition] has doubled. Anyways, as I’m not working, it’s bad to rely on other people and, of course, it’s better if it costs less.”

Some are calling it just a temporary fix.

“It feels like kind of a stop-gap, but it’s still better than nothing with the rising cost of living. I mean, between rent and increased interest rates on loans and people making less money than their parents, I think something needs to be done about it.”

Others say they’re skeptical about Biden’s intentions.

“It just seems like a ploy to use for votes I guess. That’s just my humble opinion. It seems kind of unfair for the people that paid for college and don’t get anything in return for doing the right thing.”

The plan will relieve debt for up to 43 million borrowers, and wipe out the remaining balance for almost half of them.

The White House says nearly 8 million may receive relief automatically if their relevant income data is available to the Department of Education.

Others must go through an application process, that’s currently being set up.

The Department of Education expects it to be available by the end of the year.

The White House says loans received after June 30 are not eligible for relief.

President Biden also announced Wednesday that federal student loan repayment has been extended one last time, through Dec. 31.