Students react to President Biden’s student loan forgiveness plan

Current and former students across the country are searching for ways to reduce their student loan debt. President Biden’s administration announced in August they’ve created a student loan forgiveness plan that will relieve students from financial constraints.

Borrowers who are eligible can receive $10,000 in forgiveness and Pell Grant recipients can receive $20,000 in forgiveness. In addition, Biden has lowered the cap of a borrower from 10% to 5% of their income.

The plan will affect more than 40 million Americans and will cost $400 billion. Completing the forgiveness plan will take up to 30 years.

The qualifications for the forgiveness plan depend on a borrower’s income in the years between 2021 and 2022. Individual borrowers who earned less than $125,000 and married couples or heads of households earning less than $250,000 annually will see $10,000 of their federal student loan debt forgiven.

USC students shared their thoughts on the impact of Biden’s forgiveness plan and how it will assist those searching for student loan funding.

“I plan on going to med school after undergrad, which is already pricey enough, so I will take all the help I can get in the financial area,” said Chance Bordner, a junior studying health and the human sciences. “For other students, I hope it allows them to more openly pursue their dreams and goals. I would hope that financial burdens aren’t ever a barrier to access those things.”

The forgiveness plan has the ability to contribute to financial freedom and increase options for educational choices. This plan helps create chances for students to gain higher education regardless of their financial background. However, many students are unaware of the steps they should take.

“I don’t know how to apply. And I do believe USC should take the responsibility to show students,” said Allison Nakajima, a junior studying design and business administration. “I wasn’t planning on applying but that’s a good amount of money, so maybe I’ll get it.”

Cynthia Sanchez, a junior majoring in industrial and systems engineering, said she was confused by the news and needed the university’s guidance.

“I think financial aid can do a better job in terms of giving students that kind of information.” Sanchez said. “I know the information, when it got released to the press, it was kind of all scattered. People with a variety of status who do take out loans have all these mismatches of what exactly is going on.”

USC’s Financial Aid office has created a link for students to learn more about President Biden’s student loan forgiveness plan.

The forgiveness plan is not automatic to student loan service accounts but requires those who qualify to apply. To apply for Biden’s student loan forgiveness plan, visit the Federal Student Aid website. The portal for the student loan forgiveness application opens in early October and closes in December 2023.