On Aug. 24, United States President Joe Biden announced a nationwide student loan forgiveness plan. The plan was initially created in 2007 under President George W. Bush. Its goal is for American citizens to have their federal student loans canceled after 10 years of consistent, on-time payments.
Millions of Americans rely on government aid to fund the cost of higher education. According to a release from the White House, a lack of federal support has left “many students from low- and middle-income families with no choice but to borrow if they want to get a degree. As a result, the Department of Education concluded the typical student with loans graduates with nearly $25,000 in debt.
The new plan is designed to reward $10,000 in loan forgiveness to college students that go into public service.
After meeting with a handful of Samford students, the feedback about Biden’s plan has been largely positive. This act relieves many college students who struggle with paying for college.
Sophomore Libby Hutchinson said, “I had to take out loans this year and to know that if I put in the work to graduate, there is a reward down the road.”
Hutchinson continued to emphasize her support of Biden’s act.
“In 10 years I might be a parent and at some point, you have to start thinking how you are going to provide for your children and how to continue paying for your loans,” she said. “If I get $10,000 [forgiven, I can invest] in my family’s life and future.”
Sophomore Marcus Little highlighted some of the positives and negatives.
“I do think it’s a good idea, however I am unable to tell if it will have adverse effects on the economy,” Little said. “It will take away a lot of anxiety and worry about future payments.”
The plan changes how college students think and plan their financial futures.
Along with support for the act, there are also concerns from Samford students about where the government will cover the added national debt that comes with forgiving federal student loans.
Junior Rafa Figueroa said, “if you give more money away it will have to be [paid] back [in full].”
The plan gives students incentive to be responsible when paying off their loans.
Sophomore ROTC Serenity Stroud said the plan “gives people an opportunity to save money and encourages people to pay on time and be consistent with it.”
Several Republican-led states have filed lawsuits to block the act. Missouri, Iowa, Nebraska, South Carolina, Kansas and Arkansas representatives argue that the act puts them in financial harm and distorts government revenue. People on both sides of the argument will have to be patient until the act is officially passed, if it is at all.
Ultimately, the act is designed to give college students a sense of relief. Samford students seem to agree with the statement; even so, the government will have to figure out a way to cover the added costs created by this decision.
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