Application for student loan forgiveness still pending despite legal pushback
ST. PETE, Fla. — At the moment, President Joe Biden’s student loan forgiveness program is on pause. A U.S. appeals court on Friday decided to temporarily block the plan to forgive and forgive billions of dollars in student loans.
22 million borrowers, including Erica Lovelette, are now awaiting the decision of the high court.
“We’ve been paying for it for a while now. So it would be nice to have that paid for. I can’t see it as another expense that we have to pay every month,” Lovelette said.
Lovelette has included student loans in her monthly bills for the past 15 years. She was thrilled to learn that the plan would forgive $10,000 in loans, plus an additional $10,000 for Pell Grant recipients.
“It definitely contributes to not being able to do certain things or pay attention to shopping or whatever. And that would definitely make a big difference. But again, it would be nice to charge for it and give it up, but at the same time , I kind of got used to it for, like I said, 15 years of paying to be able to afford this,” she added.
Achieva Credit Union Director Jay Perez hears similar stories from people waiting for help.
“There was a young professional woman, who hasn’t been in school for a few years. And one of her comments was that if that’s the case, because in her case, having had a Pell grant is actually $20,000, so that’s a big chunk, that she might be able to pay off what’s left in less than three years,” Perez said.
Then there is the worry of people who don’t know their debt. like University of South Florida St. Pete freshmen Ella Barnes and Lily Sanchez.
“After that, I’m going to have to go to school. And I don’t know how long I’ll have for a job in that case. And also, my potential job after, after college isn’t the highest paying “, Barnes said.
Freshmen both pay out-of-state tuition.
“My parents were very skeptical about letting me go all the way from Illinois to Florida, just because they were like, ‘Are you sure you want to go this far and go into this much debt for something? something that is completely uncertain?’,” Sanchez added.
Jay Perez advised people to keep asking for forgiveness despite the legal issues.
“The government is still able to look at these applications. They are still able to go ahead and transfer or pass this on to loan officers. The only thing they can’t do is to officially cancel the debt while the suspension is in place,” he said. said.
The Biden administration has announced its intention to erase this debt as early as mid-November. Due to the legal woes, it’s up in the air when relief might come.
For Lovelette, this money would be directly reinvested in student loans.
“I actually have a daughter here in college right now. It would definitely help pay for her education,” she said.
Whether the money comes or doesn’t come, Perez said to keep budgeting and seek help from a financial institution.
“If they find themselves in any situation where they need help planning for that debt, maybe looking at all of their debt and seeing what can be done to alleviate some of it, through, you know, some sort of debt consolidation, we can certainly work with that, or also look and see what we can work on to help them tackle that high interest rate debt first, and go from there,” said he declared.