Mixed reaction from college students on Biden’s student loan forgiveness plan

Purdue Fort Wayne Students Summer
Purdue Fort Wayne Students Summer(WPTA)
Published: Aug. 24, 2022 at 5:49 PM EDT
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FORT WAYNE, Ind. (WPTA) - Mixed reaction from college students who heard what President Joe Bidens’ college debt reduction plan will be.

BACKGROUND: Biden announces student loan plan: $10,000 forgiven, $20,000 for Pell Grant recipients

For Purdue Fort Wayne Junior Ashley Ombati, this will help her out once her nursing career begins.

“Once I graduate, they give you like a six months forgiveness {pause}. Like, most of my money is going to be going to paying student loans, so that definitely will help me get a start in my life in the future,” Ombati says.

Junior Mason Vrablic doesn’t like the move, saying it’s not fair for the taxpayers.

“Someone will have to pay for it and that comes down to you and me,” Vrablic said. “Undoubtedly, we will be paying for someone else’s tuition. They knew the consequences, they knew the risks, but they still went out, they’re the one who made the choice and we have to suffer the consequences.”

The move is expected to help 45 million Americans and eliminate student loans entirely for nearly 20 million people.

Executive Director of Financial Wellness and Education at Indiana University, Phil Shuman, says that help could be life-changing.

“I do think this is life-changing for a lot of families. It can help them to get their economic mobility back. Allow them to potentially build up their emergency savings. It might just, sort of, allow them to survive over the course of the next month,” Shuman says.

Shuman explained a number of people are still suffering from the pandemic. For PFW Junior Ignacio Barcenas, he likes the idea that people he knows who are struggling will be getting some relief.

“I know a couple of my friends like lost jobs and with college and everything. So, I think this might be a great opportunity for them to have a little bit of their loan forgiven,” Barcenas explained.

Economically, Shuman says $10,000 MIGHT have an impact on the already high inflation, but says no one is certain if that will end up being the case.

Shuman explained, “You’ve got all of these other factors in the economy right now that are taking place that we’ve really never seen before. We’re still dealing with, sort of, the after-effects and we’re still dealing with the economic consequences of the pandemic and how does that relate to the loan forgiveness? Like, this is just a component of if and there are so many other things that are happening that.”

To learn more about the loan program and if you qualify, go to https://studentaid.gov/debt-relief-announcement/

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