Pres. Joe Biden cancels $10,000 in student debt for millions of borrowers
PITTSBURGH (KDKA) — President Joe Biden announced a plan on Wednesday to forgive some student loan debt for millions of borrowers.
The plan calls for $10,000 to be forgiven and $20,000 if someone received a Pell Grant. The Biden administration feels this will help middle-class Americans.
"It's a good idea," Joseph Martinez of Aliquippa said Wednesday.
"I feel the pain of not being able to afford homeownership or things that are really prohibitive to what we consider the American dream," graduate student Jonathan Cordle said.
Anyone making less than $125,000 or households bringing in less than $250,000 will qualify for the forgiveness.
"It allows people to ease back into repayment while focusing on things important to life," Slippery Rock University Director of Financial Aid and Scholarships Alyssa Dobson said.
She said the average graduate of SRU leaves $33,000 in debt between federal and private loans.
"If there wasn't the option for these students to borrow while they're learning, they might not be able to learn at all," Dobson said.
According to her, students still in school will benefit from the income-based repayment program capping at 5% of someone's discretionary income.
"Not only are students going to have a portion or all of the debt forgiven, but once payments kick in in January, they're going to be even lower," Dobson said.
If someone is making monthly payments, they should not see their balance increase because of interest.
"I would like to see the cost of school lessen, but this would help the students get through school and pay off their loans," Robert Morris University senior Josh Milteer said.
Whereas some are praising Biden's move, others said it's not enough. Activists with Take Action Mon Valley said all student loans should be forgiven and there should be efforts to help lower the racial wealth gap by addressing salaries and predatory lending.
Many Republicans are against the plan and call it bribery for votes.