BEAUMONT, Texas — A decision to temporarily block a program that would cancel billions of dollars in federal student loans has left many concerned.
Millions of people across the nation applied for President Joe Biden’s plan for student loan forgiveness. A Friday decision by an appeals court put the relief on pause, leaving many to wonder what will happen with their loan repayment.
Sharon Thibodeaux is the director of financial aid for Lamar State College-Port Arthur. She feels the decision to put the relief on hold has left 22 million borrowers waiting to see what it means for them financially moving forward.
"$10,000, $20,000 goes a long way for a lot of students," Thibodeaux said.
Thibodeaux believes a decision to forgive debt will help people across the nation.
"But, I think it's great that it gives them some type of relief, you know,” Thibodeau said. “If you can't pay for it all, it gives them a relief for some of it.”
If the program is allowed to continue, those making less than $125,000 annually or households with less than $250,000 annual income would get $10,000 in student loan debt forgiven.
Pell grant recipients who demonstrate more financial need, will get $20,000 in debt forgiven. Loans used for undergraduate and graduate studies also qualify.
The following are eligible for relief if a person received the loan funds on or before June 30, 2022:
- William D. Ford Federal Direct Students loans
- Federal Family Education Loan Program loans
- Federal Perkins Loan Program loans
- Stafford loans
- Parent Plus loans
- Graduate Plus loans
- Perkins loans held
Despite the pause, Thibodeaux is encouraging borrowers to apply for the program. She is even urging those who think they may not qualify to apply.
“Some people are under the misconception that they won't qualify for it," Thibodeaux said. "But, when you have high income and have a lot of people in the household, it helps bring the EFC down so that they can qualify for it."
As for if the forgiveness program will be back in action before January 1, when loan repayments are expected to continue, the Biden Administration has until Monday, October 24, 2022, to submit its response. Americans can expect the Republican response Tuesday.
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