CNBC readers react to chance of $10,000 in student loan forgiveness
Joe Daniel Price | Moment | Getty Images
Tens of millions are anxiously awaiting word from Biden’s administration about its plans for broad-based student loan forgiveness.
Recently, it was reported that the White House had been considering cancelling loans at $10,000 per borrower for those earning less than $150,000.
However, President Joe Bidenis constantly under pressure to accomplish more.
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Chuck Schumer (New York), the Senate’s top Democrat and Sen. Elizabeth Warren (D.Mass.), have been pressing him for at least $50,000 forgiveness.
NAACP also voiced concern that $10,000 would not be enough to help Black student loan borrowers. They have an average debt of more than $50,000 just a few years after graduation.
Wisdom Cole is the national director of the association’s youth-college division. She recently stated on Twitter that it would be “a slap to the face” to slash just $10,000.
However, student debt forgiveness is a controversial idea that angers many Americans. This includes those who have not borrowed to pay for college or education. Some RepublicansThey said that they were going to try and block the president’s efforts to cancel the loan.
It is because of this disagreement that it has been difficult for the Administration to make a decision on how to proceed with the midterm elections.
CNBC asked viewers how they felt about $10,000 worth of student debt being forgiven by the White House. A lot of people submitted their thoughts.
These are the opinions of four people. (Note from the Editor: The answers have been slightly edited to improve clarity.)
“$10,000…would be significant for me”
Caleb Perkins, 29, student
By the time that I finish my Ohio University master’s degree in social work, I will have approximately $50,000 of debt. As a college student, I come from humble beginnings. My mother is a high-school graduate, my dad is a high-school dropout. Both of them have been some of the hardest working people I’ve ever met.
Sinclair Community College in Dayton was where I began my higher education. I received a significant scholarship and a Pell Grant due to the income of my family. My associate’s was in cybersecurity, computer forensics and I then transferred to Ohio University for a bachelor of criminal justice.
Student loans are one of the necessary evils that I consider. The debt is not something I desired. I would like to be forgiven ten thousand dollars. It’s not as much as I would like. No. However, it’s better than nothing. 20% is still quite enough.
Living within your means
Stephen Berenson (59), retired financial analyst
My perspective is that of a parent who helped pay for the undergraduate educations of two of her children at private liberal arts colleges. Then, she also funded a master’s level program for one of her kids. Our family didn’t borrow money for student expenses. We instead looked for schools that we felt could fully fund their education with merit-based and our contribution.
To forgive student loans is an insult to students and parents who have saved money for college.
Retired financial analyst
Each of our children were accepted at a few schools, but the merit aid packages weren’t sufficient. After some discussion and disappointment, we all agreed that these schools would be too expensive for us.
Parents and students saving for college are not entitled to student loan forgiveness. Living within your means should be promoted by the government. This message is lost, I believe.
“$10,000 wouldn’t make a difference in my debts”
Kaylea Weiler is 36 years old and is an associate at a law office
An attorney owes $125,000 on student loans. After making steady payments for the past 10 years and spending $25,000 in the interest-free pause the last 2 years, I owe $125,000. My minimum monthly payment required me to make $1,800 before the pause. Although I am now a partner in a law office, my monthly minimum payment is $1,800. I still feel trapped by debt and have no other options.
New mom. I want to spend the infant and toddler years of my kids at home, but it is impossible to afford to not work. My parents couldn’t afford to finance my law school tuition or support me financially, so I took out loans.
Ten thousand dollars wouldn’t make a difference in my debt. This is the first time I’ve written this. Others are much worse off than mine. However, this is me and it’s not my only situation.
You can either cancel it all or you do nothing.
Teacher Erin Bartlett (42),
St. Paul, Minnesota
The thought that $10,000 could be forgiven is absolutely crushing to me. Minnesota has been my K-12 education provider for over 19 years. There is still about $50,000 that I must pay. The debt is overwhelming. In order to keep my ends afloat, I have two part-time jobs.
It’s so frustrating that America is the only place in the world where free education is not available. It would be a great way to save money and not have to do three jobs if all federal student loans were cancelled. You can cancel it all, or you could do nothing.