Biden student debt forgiveness proposal gets mixed reception in North Texas
DALLAS (CBSDFW.COM) - There is now some breathing room for borrowers still struggling with student loan debt. As word spread across college campuses that President Biden was delivering the promised relief, reaction was mostly positive, but still mixed.
"Six months in advance, I was like I am going to be in debt for the rest of my life," says Grace Moundas, a SMU freshman Although she's just beginning her college career, Moundas said she feels the debt is worth it because of the promise of higher paying jobs that typically accompany degrees.
And many older students agree - including Zsetaun "Ziggy" Washington, a North Texas teacher and mother of three young adults.
"You can go to trade school, you can go to college, you can become an intern...as long as you're educated in whatever skill God gave you, that's what we want you to do," said Washington. "It's a big deal."
For the Washington family, education has always been key: even if kept the parents locked in student loan debt.
"About $80,000 altogether," shares Washington, without flinching. She's now pursuing her doctorate. And admits that the student loan debt has meant touch choices.
"We leave. I will probably never own my own home because I made the choice," says Washington. "My husband has college debt and we have to pay it back. So, when it's all said and done - mortgage? college debt? That's the choice that I made."
Now, the Biden administration is looking to give students who meet certain income guidelines more options - forgiving up to $10,000 in federal student loans for those who earn $125,000 or less per year. The plan also eliminates an additional $10,000 of debt for Pell Grant recipients, the neediest of students.
"Just grind hard in high school and go wherever it pays you the most to go," said Zach Wagner, who does not support the loan forgiveness plan. "Where is it coming from, right? The stimulus bill, 2020, all of that stuff added up and now we are where we are. Why more? You know what I mean?"
Still, Wagner admits that his parents were able to save for his college education and he won't need to take out loans.
The gift the Washingtons are giving their young scholars? Their earned financial wisdom.
"When they leave my home, they will be homeowners," said Washington.
Their 21-year-old daughter just completed her studies while living at home, keeping her student loan debt so low that she'll pay it off in a year.
"That's my legacy. I feel like we are here to teach our kids to do better," said Washington. "My legacy is to change the trajectory of what happened to me, so they can make better choices."