Student borrowers concerned about Biden’s loan forgiveness

by Kit Taveras Features Editor

President Biden’s student loan forgiveness plan, also known as the Biden-Harris Administration Student Debt Relief Plan, currently finds itself threatened following a pause implemented by Republicans in December last year.

Originally proposed in August 2022, the program seeks to offer up to $20,000 USD in student loan forgiveness to lowor middle-class borrowers as a means to address the financial struggles many students had as a result of the COVID-19 pandemic.

The program has been a large topic of debate since its conception. One main criticism toward the program is how much it is expected to cost.

The Congressional Budget Office (CBO) estimates the program will cause the cost of outstanding student loans to increase by over $400 billion, as well as increase the amount of money the government borrows over time.

Critics opposing Biden’s plan have also argued that student loan forgiveness will not decrease the cost of attending college in the future.

According to Douglas Holtz-Eakin, president of the American Action Forum, the cost of tuition would increase over time, thus making more borrowers expectant toward having their debt forgiven.

However, the program is a major opportunity for its supporters. Of the 43.5 million Americans with federal student loans in the U.S., many are also students attending Lock Haven University (LHU).

According to College Factual, 83.0% of incoming LHU students take out loans averaging $8,694 in their first year. Overall, 75% of LHU students take out loans to pay for their education.

One student, a chemistry major at LHU, who chose to remain anonymous, expressed that student loan forgiveness should be a first step rather than an end result.

“We should be working toward affordable tuition for everyone,” she said in an interview.

She added that college is difficult enough without having to worry about the thousands of dollars borrowers are expected to pay after graduation, and that it could take decades until those individuals are debt-free.

For students unable to pay college expenses on their own, Parent PLUS loans are also a major concern. Parent PLUS loans are federal loans paid for by the parents of students to help cover costs. Like student-covered loans, they are also eligible for forgiveness under the debt relief program.

“My parents aren’t the richest,” said Rylee Dillon, a communication student specializing in electronic media. They expressed that Biden’s plan would not only be a significant help to their fam- ily, but many other borrowers in the U.S. as well.

Dillon also shared their thoughts on criticisms toward Biden’s program, and their belief that the benefits far outweigh the risks.

“I don’t like the thought that, since you had to suffer through paying your student debt, other people should suffer too,” they said. “It’s like seeing that your neighbor’s house is burning down and telling the fire department they shouldn’t help them because your house burned down last week.”

At present, over 200,000 borrowers have applied for the program. Any additional applications are closed until further notice, to the frustration of students that were not able to seize the opportunity prior to the program being paused.

Dillon, a resident of Pennsylvania, acknowledged that their debt could be a lot worse, though the amount they are expected to pay back is still bur- densome. They stated that Biden’s forgiveness plan, if implemented, could eliminate up to half their debt.

Communication majors earn $5,000 for their department after winning hot dog eating contest, Thursday April 13, 2023. Photo/Ashley Lawson.

For now, the future of Biden’s program remains unknown. Amid debate, the U.S. Supreme Court is expected to make a decision on whether the plan can be implemented sometime this summer. Expectant borrowers who already applied before the pause can check the status of their application through the U.S. Department of Education’s website.