CHAMPAIGN, Ill., (WCIA) — Millions of students are now affected by a new plan President Biden announced on Wednesday. It’s aiming to help people with student loans.
President Biden is forgiving up to $10,000 in federal student loan debt for individuals who make less than $125,000 a year, or couples earning less than $250,000 a year.
If you received a Pell Grant while in college, he is forgiving up to $20,000.
Some students on U of I’s campus said this will allow them to focus on things outside of their academics, such as their apartments and family.
Michelle Rivera, an education major, said she can think about her future classroom more.
“I can focus more on the students I will be teaching instead of how much money, and then stressing out about that,” she said. “That way, I can focus on the people I’m supposed to be teaching, instead of my own problems.”
Liz LeBeau, a junior in political science and English, said she has about $12,000 in debt.
“Having less debt from undergrad is definitely going to help me a lot because I’m planning on going to law school,” she said. “Not having to worry about undergrad as much is going to be very nice. So I’m going to be in less amounts of debt from law school.”
She also said it will take a weight off of her family’s shoulders.
“I have a little sister who’s gonna be in college in two years. My parents both went back to school in the past decade, so they’re still paying off their loans, LeBeau said. “This is probably going to help them a lot as well because they’re trying to pay it down, and they’re also trying to help me pay mine down. And it will definitely help my little sister when she comes in.”
President Biden said the plan will be paid for by deficit reduction under his administration.
He’s also extending a pause on monthly loan payments.
The Department of Education is currently working on an application process to claim the relief. It may not be ready until the end of the year, the Biden administration plans to have the application ready before federal student loan repayments.
Those have been frozen since the peak of COVID-19. They’re expected to begin again in January.