DAYTON, Ohio (WDTN) — Some students here in the Miami Valley say their futures are looking brighter after Biden’s loan forgiveness plan. Local experts say there are pros and cons to his plan.
“I think it’s really beneficial, I know myself and alot of friends are about to graduate and it’s very stressful thinking about our futures,” said University of Dayton Senior Kayla Lenahan. “This takes a big weight off our shoulders to know this is just one less thing we have to worry about for our futures.”
Some University of Dayton students say their future just got a whole lot brighter after Biden announced thousands of student loan dollars will be forgiven. However, local financial experts warn while the plan is great for individuals, it comes with a hefty price tag.
“So for the individual it’s wonderful, for the aggregate, the country, the economy, the price tag on this was $300-billion, I get very nervous with that.,” said Cedarville University Executive Director of Financial Aid Kim Jenerette.
For those who went to college on Pell Grants, $20,000 will be forgiven. Those who did not receive that grant will see $10,000 in debt forgiveness.
People with undergraduate loans can cap their repayment at 5% of their discretionary income. After 20 years of monthly payments, people’s undergraduate loan obligation will be fulfilled if it hasn’t already.
Jenerette says in the meantime, colleges and universities must accept financial aid requests whether students intend to pay them back or not.
“It’s business as usual, if you come to me for a student loan, regardless of your intent to pay it off or not, we still have an obligation and responsibility if you have the eligibility to process your loans if you complete the required steps,” said Jenerette.
Other UD students say they’re not sure yet if they qualify for the loan forgiveness but are hopeful those in need will greatly benefit.
“Looking towards the future, this puts us a step forward in getting out of college and having less stress to worry about,” said University of Dayton Junior Farrell Moorehead.
Biden also extended the repayment loan pause until December 31st of this year.