President Biden on Wednesday announced new measures to address federal student loan debt, which includes forgiving up to $20,000 for some borrowers and extending the payment freeze one last time until the end of the year.
We asked readers to tell us what this plan means to them. We’ve received mixed reactions from Americans — both from people with student debt and others who have already paid their balances in full.
Gabrielle, who lives in West Virginia and did not provide her last name, said the announcement would “reduce the burden of monthly expenses” for her, adding that she would no longer have to pay on one of its loans.
“I could actually save a little each month for my future” and not have to live paycheck to paycheck, she said.
Greg Barrett of Yakima, Washington called the announcement “wonderful news.” He said he was able to help his two daughters through college, leaving them both with around $20,000 in debt. The president’s decision to forgive each of them up to $10,000 will help them start their adult lives “without this massive debt hanging over their heads.”
Sarah Jensen from Minnesota shared a similar story, saying forgoing some loans will help ease debt stress.
Others heavily indebted say the announced plan is not enough.
Some readers called the plan to forgive up to $10,000 for some borrowers or up to $20,000 for Pell Grant borrowers who earn less than $125,000 a year “a drop in the ocean.”
Paul from Ohio, who did not provide his last name, said the cost of higher education is the real root of the problem, adding that Biden’s plan “treats the symptoms, not the causes.” He wrote that he wanted to see more changes to fix the college system that aren’t just about money.
Others who submitted their thoughts to CNN said they worried that forgiving some loans would reward predatory lending and irresponsible borrowing. Some have also said that the more money the government makes available to help pay the loans, the more colleges and universities will raise tuition fees.
Paul Mouer of Dallas, Texas, wrote he was “torn” by Biden’s plan, saying he was “worried it won’t do anything to stop escalating college costs.”
Some readers said they were frustrated with the plan, especially those who have already paid off college debt. Several wrote to CNN expressing feelings of “slap in the face” for living frugally, making sacrifices or working multiple jobs to achieve their financial status without any help.
Juan in Texas wrote: “I voluntarily took out loans to pursue higher education, and I knew what I was asking for. I worked extremely hard, lived frugally, and paid off 100,000 in debt. I doubt it will improve life. outrageous inflation our country faces.”
Tell us what the cancellation of certain federal student loans means to you here.