In August 2022, President Joe Biden announced a federal student loan forgiveness plan that is expected to cost $400 billion, according to the National Public Radio. The Department of Education plans to offer $20,000 worth of student debt for Pell grant recipients with loans from the Department of Education, and $10,000 in loan relief for non-Pell grant recipients.
This can take a massive weight off of students at Otterbein and across the country. According to CollegeFactual, 77% of undergraduate students at Otterbein take out federal loans to help pay for their college education. Among the class of 2020, 55% of bachelor’s degree recipients took out student loans across the country.
Serea Tyler believes that this plan will help her and many other college students in the long run. “I think this is a push in the right direction, honestly,” said Tyler, a junior communications major. “This is going to help push through whatever financial struggles you had.”
A coalition of Republican-led state attorney generals appealed to the 8th U.S. Circuit Court of Appeals. These courts have placed a temporary hold on this Federal Student Loan Forgiveness program, and the court is determining whether to impose longer-lasting rulings.
Dalton Mosley, a sophomore creative writing and film studies double major, says it is our government’s job to make sure that education is affordable and accessible to everyone. “I think it is 100% the government's job to ensure that the kind of education that students get is not only affordable, but also I mean, this might be a bit out there, but free,” said Mosley. “Education is what drives people to learn about everything the world has to offer.”
The Supreme Court has decided to stay out of the matter of whether there will be continued blocks on the Federal Student Loan Relief Plan. The next decisions will come out of the lower courts. The application to take advantage of the Federal Student Loan Forgiveness Plan is open. You can apply at https://studentaid.gov/debt-relief/application.