TULSA, Okla. — Millions of Americans, including many Oklahomans could now face less student loan debt. Today President Joe Biden announced a student loan forgiveness plan for Americans making less than $125,000.
The plan is something the president promised during his campaign for the oval office.
Wednesday President Joe Biden announced that Americans making less than $125,000 can have ten thousand dollars in student debt forgiven. That number doubles for students who got Pell Grants. Some current college students are still questioning if the plan is still enough.
"Over time, that ticket has become too expensive for too many Americans," President Biden said.
His multi-pronged plan includes up to $20,000 in loan forgiveness. It's big news for millions of Americans seeking relief from their student loans.
“The burden is so heavy, that even if you graduate, you may not have access to the mid-class life that the college degree last provided," Biden said.
The cost of four-year universities nearly tripled over the last four decades, according to a report from Collegeboard, leaving students like Rachael Miears with limited options to get her degree while avoiding serious debt.
“For TCC, it’s a little bit lower than a four-year college and when it does come to a four year college, especially if you’re boarding, you have the meal plan, you have all of the stuff that you have to pay for…that can come up to at least 10,000 and people don’t have that money in their pocket, and it’s going to build into loans and loans and loans," Miears said.
Paul Chanda, another TCC student, also chose to get his associates degree to save up on the cost of a four-year university. So far, he said it has helped him save some money.
“Probably the entire cost of two years," Chanda said.
Biden said his plan will make repayment more manageable for students like Chanda and Miears. In addition to the $20,000 in forgiveness, the plan slashes the borrowers have to pay per month from 10 percent to five percent. It forgives loan balances after 10 years of payments, instead of 20 years.
It covers the borrower's unpaid monthly interest.
"People can start to finally crawl out from under that mountain of debt. To get on top of their rent and their utilities. To finally think about buying a home or starting a family or starting a business," Biden said.
Miears said for some, the plan seems unfair.
"I know someone that they paid of all their student loans and then the student loan forgiveness came about a year after that, and they were so mad because they had so much trouble paying off their student loans, and everyone's just got forgiven and they were kind of mad about that.
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