Current students other than entering freshmen are eligible to have up to $20,000 in federal loan debt forgiven, according to Tonya Hammontree, director of financial aid, through President Joe Biden’s plan to forgive a portion of federal student loan debt per borrower.
Hammontree said her office has been receiving a lot of questions about this from current students.
“Only current students who had an outstanding loan balance as of June 30, 2022 will be eligible,” said Hammontree. “The debt relief program will not apply to any new loans borrowed for the 2022- 2023 academic year.”
She explained that the loan forgiveness will not apply to loans for incoming freshmen and loans from current students taken out after June 30.
One current student compares the option of student loan forgiveness to a game of Monopoly. They said it is like passing “Go” and never collecting the $200.
“Having [student loan forgiveness] available and not using it seems like a waste. Might as well use all the opportunities available,” said the student. “…there are funds for it that the government has already decided they will be using.”
The student said they are primarily focused on the future implications of the plan and how it will affect the cost of higher education.
“Now I think the real problem is …the cost of higher education is out of control, and with the government being so willing to hand out more money… the universities will continue to charge more because they know that money will be available and students will pay,” the student said.
CBC alumni also have opinions about student loan forgiveness.
Alumnus Dakota Saeler graduated in 2017 with student loans from his undergraduate and master’s degrees.
“A big portion of my paycheck goes to my student loans… to help pay them off quicker,” said Saeler.
While Saeler was enrolled, he had to balance academics and paying off some debts. He said his mom pushed him to primarily focus on his grades, so he could keep his scholarships.
“I did things on the side to help me pay,” Saeler said. “…but academics was a very high priority, so I was always pushed to focus on my grades.”
Saeler said he sees both sides of the issue firsthand through his marriage.
“Personally, it’s a big blessing for me. Coming from a lower economic class, if I wanted to get further in school, I had to take out loans,” said Saeler. “I do see the other side of it with my wife who didn’t have to take out any loans for her schooling, and she won’t get anything in return.”
Alumnus Nyasha Dube enrolled as an international student in 2022 with no student loans. According to Dube, he had shortfalls that he owed the school, but was able to pay them off as a student worker.
“I think [student loan forgiveness] is beneficial to the people who owe a lot of money,” said Dube. “It’s also hard for those who never went to school because of money.”
Hammontree says that 54 percent of CBC students took out student loans for the fall 2022 semester. She gives advice to students to plan ahead.
“The staff of our CBC financial aid office is always available to answer questions and help you find resources in planning for each year of your college education,” said Hammontree.
Hammontree said students may check the federal online student loan website for more information about applying for student loan forgiveness.
https://studentaid.gov/debt-relief-announcement/one-time-cancellation.
