On August 24, the Biden administration announced a three-part plan to partially forgive student loans for low-to-middle income student borrowers:
– The Department of Education will provide debt relief of up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.
– Lending companies will reduce monthly payments by keeping annual undergraduate loan payments to less than five percent of borrowers’ annual income.
– The Biden administration will continue to maximize the use of Pell Grants and work to make community college free. To be eligible, you must earn less than $125,000 and married couples cannot earn more than $250,000.
About 74% of Gannon students qualified for financial aid in 2020. This means the majority of students are likely to fall into the loan forgiveness categories, which could help them pay off their student loans.
This not only affects current students, but also alumni and prospective students. It’s a waiting game, but experts say keeping personal FAFSA information up-to-date and filing personal taxes is a must. For those who have everything up to date, the process should be smooth and borrowers will automatically be credited to their loan accounts.
Logan Swanson, a sophomore in legal studies, said that since the American education system is too expensive, this is an important initiative.
“It’s not something that happens in other first world countries such as the UK, Italy, France and Germany.” said Swanson. “These are all countries with very good education systems similar to, if not better than, the United States”
David Steward, deputy director of the Office of Global Admissions and Outreach, said this initiative will have ripple effects.
“I finished last year paying off student loans — it took me 19 years to pay them off,” Steward said. “It will be great for students and graduates. My niece and nephew are going to college and I don’t want them stuck with this.
Marilee Wilkosz, director of the Office of Global Support and Student Engagement, said while the initiative isn’t changing her daily life, she’s glad it’s happening.
“It’s a good, overdue, small thing in the scope of national student debt,” Wilkosz said. “It’s obviously a political strategy for voters, but not bad, it’s how politics works. There are many people who are halfway there who will benefit.