Students hope for loan forgiveness as part of President-elect Biden’s stimulus package
President Donald Trump has extended the break twice, and President-elect Joe Biden is expected to do the same once he takes office on Wednesday, January 20.
Barbara Headrick, professor of political science at Minnesota State University Moorhead, said many of her students have taken out loans and are happy with the hiatus so far.
“(The break) weighs more heavily on students in low-income areas who use student loans more and people who choose to go to graduate school,” she said.
One of those graduate students is Alex Holte, who attends the University of North Dakota.
Holte took out $ 25,000 in subsidized loans during his undergraduate years.
“I haven’t really spent a lot of money on a lot of my expenses. I haven’t really eaten the finest food,” said Holte. “I had a very small budget.”
Biden is also expected to encourage Congress to draft a bill to fully forgive at least $ 10,000 for each student borrower.
Critics of the plan say it could lead to more borrowing for students who are still in school, adding to their existing debt, but Holte strongly disagrees.
“It doesn’t take a lot of years to reach $ 10,000,” he said. “It doesn’t take a lot of years to be a student, and I don’t think a lot of students are going to be like, ‘Well, I’m just going to spend next year just laughing.'”
According to financial aid figures, UND students borrow an average of nearly $ 6,000, while North Dakota State University students borrowed just over $ 9,000 over the course of the year. of the 2018-19 school year.
At Concordia College, a spokesperson said many students were taking the maximum subsidized loan amount, which is $ 5,500.
With all the borrowings, Holte hopes for some sort of relief not only for himself, but also for his classmates, as they seek to begin their future beyond school.
“To be able to have some form of help from the government, so that we can have our American dream, I think is very beneficial and very useful,” he said.